"My income fell after retirement, but my health insurance premiums actually went up."
People who switch from workplace-based health insurance to regional coverage after retiring are paying premiums that take up to three times a larger share of their income, according to data presented at a parliamentary hearing. Critics say the system should be overhauled because it charges premiums simply for owning a home, and the government has begun reviewing changes.
At a National Assembly Health and Welfare Committee audit held on the 16th at the National Health Insurance Service in Wonju, Gangwon State, Rep. Kim Yun of the Democratic Party of Korea said the premium burden on those shifted to regional coverage after retirement is excessive.
According to Kim, the share of income going to health insurance premiums for people who moved from workplace to regional coverage rose threefold among those aged 55 to 59 and 2.3-fold among those aged 60 to 64. "Is it right that the premium share rises like this while income falls?" Kim said. "This problem has been raised for a long time, yet improvements have not been sufficient."
Workplace subscribers pay premiums based mainly on their wages, while regional subscribers have their assets counted in the calculation on top of income. That means premiums can rise even as retirement cuts income, as long as the person still holds assets such as a home.
The fairness of charges across asset brackets also came under scrutiny. "Comparing premium rates against assessed asset values, the lowest bracket is 17 times higher than the highest," Kim said, urging a shift to a flat-rate system that applies a fixed percentage to the value of assets. He called on the government to submit its review of the relevant bill by the end of the year, arguing that "expanding state funding would secure the resources needed to change the assessment method."
Rep. Nam In-soon, also of the Democratic Party of Korea, said the share of premiums based on assets should be cut further. Nam said South Korea and Japan are the only two countries that levy health insurance premiums on assets. The asset-based portion of premiums paid by regional subscribers in South Korea fell to 29.9% in 2025 from 47.4% in 2021, but still accounts for about 30%.
Noting that Japan keeps the share below 10%, Nam said: "Charging on an income basis is the right direction, but for now, actively study ways to bring the asset-based share down to around 10%." She also proposed raising the basic deduction applied when calculating asset-based premiums.
In response, Yoo Joo-heon, director general of the health insurance policy bureau at the Ministry of Health and Welfare, said the ministry agrees with the direction of assessing premiums based primarily on income and will review measures to lower the asset-based share. Kang Cheong-hee, president of the National Health Insurance Service, said the agency will study ways to reduce the asset-based share and consult with the ministry.