Korea

South Korea Health System Overview

Population – Cancer and Chronic Diseases 

  • Current estimated population of 51m (0.67% of the world’s population)1 
  • Deaths from chronic diseases accounts for 80% of total medical expenditure2 
  • Top causes of mortality include cerebrovascular disease, Alzheimer disease, ischaemic heart disease, lung and liver cancer3 
  • In 2018 the most common cancers were Thyroid, Stomach, Lung, Colorectal and Breast4 
  • There are an estimated 277,000 new cases of cancer and 86,000 deaths from cancer per year5 

Healthcare System Overview6 

  • The Ministry of Health and Welfare is responsible for national policy and planning and regional governments manage local medical centres and facilities
  • Korea’s National Health Insurance covers 97% of the country with the remaining 3% covered by the Medical Aid Program for low-income citizens. The national insurance scheme is mandatory with no opt-out option and premiums and co-payments for services (e.g. 20% for inpatient care). 
  • Many hospitals and health services are managed by the private sector
  • The National Evidence-based Healthcare Collaborating Agency is an independent agency that leads health technology assessments of health services, products and technologies (including medicines and medical devices)

 

A breakdown of the structure of the Ministry of Health and Welfare

 

Health Costs and Funders 

  • In 2018 total health spending was $140 billion (USD), equating to $3,384 per person7 and 8.1% of GDP8 
  • The annual growth rate of expenditure per capita was 7.3% between 2013-20189 
  • About 60% of expenditure costs are covered by the Government and the national insurance scheme and 34% is covered by out of pocket costs.10  
  • Major health expenditure cost categories include 26% for hospital inpatient, 32% for outpatient care and 23% for medical goods11 

Major Challenges12 

  • Relatively high smoking and drinking rates amongst Korean males
  • Rapidly ageing population and low birth rates
  • Growing burden of chronic diseases with a system built more on curative services and infrastructure
  • Out of pocket/co-payment costs are a key policy issue

Sources

  1. United Nations Department of Economic and Social Affairs, World Population Prospects 2019 Data Booklet, p17; World Bank Open Data, https://data.worldbank.org/ used in reporting of figures and calculation of percentages
  2. Korea Disease Control and Prevention Agency http://www.cdc.go.kr/contents.es?mid=a30322000000
  3. https://www.oecd.org/health/health-systems/OECD-Reviews-of-Public-Health-Korea-Assessment-and-recommendations.pdf
  4. World Health Organization International Agency for Research on Cancer, Korea, Republic of, Fact Sheets.
  5. World Health Organization International Agency for Research on Cancer, Korea, Republic of, Fact Sheets.
  6. Kwon S, Lee Tj, Kim Cy. Republic of Korea Health System Review. Vol.5 No.4. Manila: World Health Organization, Regional Office for the Western Pacific, 2015.
  7. https://data.oecd.org/healthres/health-spending.htm
  8. OECD Reviews of Public Health: Korea: A Healthier Tomorrow: https://www.oecd-ilibrary.org/social-issues-migration-health/oecd-reviews-of-public-health-korea_be2b7063-en
  9. Health at a Glance 2019: OECD Indicators:  DOI:https://doi.org/10.1787/4dd50c09-en
  10. Health at a Glance 2019: OECD Indicators:  DOI:https://doi.org/10.1787/4dd50c09-en
  11. Health at a Glance 2019: OECD Indicators:  DOI:https://doi.org/10.1787/4dd50c09-en
  12. OECD Reviews of Public Health: Korea: A Healthier Tomorrow: https://www.oecd-ilibrary.org/social-issues-migration-health/oecd-reviews-of-public-health-korea_be2b7063-en; http://www.mohw.go.kr/eng/pl/pl0103.jsp?PAR_MENU_ID=1003&MENU_ID=100326