SEOUL — In a move aimed at reducing economic stress on its citizens, the South Korean government will not increase state health insurance premiums in 2025, marking the second consecutive year of freezes, the health ministry announced on Friday.
According to Yonhap News Agency, this decision keeps the premium rate stable at 7.09 percent, a historic measure as it’s the first time the government has frozen the rate for two consecutive years. Previously, health insurance premiums were typically raised annually, with freezes only occurring in 2009, 2017, and most recently in 2024.
The ministry indicated that while there was a recognized need to raise premiums to fund medical reforms, the current economic conditions, characterized by high inflation and interest rates, necessitated a continuation of last year’s freeze to lessen the financial load on insurance subscribers.
Under South Korean law, all residents are required to enroll in the national insurance program, which also extends to foreigners residing in the country. As of the end of July, the health insurance scheme’s reserves totaled 27 trillion won (approximately US$20 billion).