Mandatory Subscription to National Health Insurance: South Korea’s World-Class Healthcare and Health Insurance Scheme
The Mandatory Subscription to National Health Insurance for foreign workers in South Korea is a crucial component of the country’s healthcare and social security framework. This system is designed to ensure that foreign laborers and their families can work in South Korea with stability while benefiting from health insurance, covering medical expenses, pension plans, workplace injury insurance, and unemployment benefits, all financed through the payment of health insurance premiums.
In South Korea, as of July 16, 2019, foreign residents and overseas Koreans residing in the country for more than six months are mandatorily enrolled in the national health insurance system. They are entitled to the same insurance benefits as Korean nationals when seeking medical treatment at hospitals and clinics. Foreigners (overseas Koreans) are required to prepay their health insurance premiums for the following month by the 25th of each month.
What Is the Mandatory Subscription to National Health Insurance?
The Mandatory Subscription to National Health Insurance is a social insurance program targeted at foreign workers and their families employed in South Korea. Its objectives include:
- Inclusion of foreign laborers and their families as beneficiaries of health insurance and social security benefits.
- The collection of health insurance premiums to provide financial support for medical expenses.
- Provision of pension plans and various social security benefits for retirement.
Calculation and Payment of Health Insurance Premiums
The health insurance premiums for foreign workers are calculated based on their monthly income. Typically, the premium rate is 6.67%, with 50% covered by the worker and the remaining 50% by the employer. For example, if the monthly salary is 3 million won, the worker and the employer each pay 100,050 won monthly as a health insurance premium.
Special Benefits and Reductions
- Foreign Students: Foreign students in South Korea may be eligible for partial reductions in health insurance premiums. The reduction rates and eligibility criteria can vary according to government policies, and detailed information can be obtained from relevant institutions or educational establishments.
- Religious Personnel: Religious personnel may be eligible for reductions in health insurance premiums in specific cases. The specifics of these reductions and the eligibility criteria can be ascertained through discussions with religious organizations or relevant institutions.
- Local Hires: In some cases, health insurance premiums for local hires may be limited to a monthly range of 100,000 to 150,000 won. The exact amount depends on the worker’s salary and government policies, so it is important to verify the relevant information.
Consequences of Premium Non-Payment
If health insurance premiums are not paid on time, the following outcomes can occur:
- Visa Extension Restrictions: Non-payment of premiums can result in restrictions on visa extensions for foreign workers, warranting caution.
- Suspension of Insurance Benefits: Failure to pay premiums can lead to the suspension of health insurance and other social insurance benefits.
- Forced Collections: The government or relevant authorities may implement forced collections to recover overdue premiums, involving deductions from the worker’s salary.
South Korea’s Exceptional Healthcare System and Health Insurance Scheme
South Korea’s healthcare services and health insurance system have garnered global recognition, with the country ranking at the top of the world in terms of healthcare accessibility among OECD nations. This achievement is attributed to South Korea’s systematic and efficient health insurance system and its outstanding medical infrastructure.
Many countries seek to learn from South Korea’s health insurance scheme and medical services, aiming to elevate the quality of healthcare services and safeguard their citizens’ health. The Mandatory Subscription to National Health Insurance, designed to support foreign workers in South Korea, plays a vital role in achieving this and providing stability in both work and life in the country.