Strategic Policy Framework for Ensuring the Sustainability of Essential Healthcare in Korea

Abstract

South Korea’s rapid economic growth over the past 50 years has significantly improved healthcare outcomes, with life expectancy rising from 62.3 years in the 1970s to 82.7 years in 2022. However, the sustainability of its high-performing healthcare system is increasingly uncertain. Healthcare expenditure as a percentage of GDP reached 9.7% in 2022, surpassing the OECD average, while the fertility rate dropped to 0.72, undermining the system’s demographic foundation. Challenges include freezing health insurance premiums despite rising costs, short-term fiscal injections without thorough evaluation, and expanding the physician workforce without accounting for demographic changes. These policies risk overburdening future generations and escalating systemic financial pressures. To ensure sustainability, a shift in healthcare policy is necessary; from expanding services to managing limited resources and controlling demand. South Korea must adopt a strategic, long-term framework that balances current needs with future sustainability, ensuring its healthcare system remains equitable and resilient.