Politics · South Korea · 16 hrs ago
South Korea considers health premiums on more types of income
South Korea’s National Health Insurance Service is considering charging premiums on some income now excluded from health insurance calculations.
The discussion includes certain earnings from individual savings accounts, private pensions and other separately taxed income.
Under current rules, some such income can be left out even when people pay tax on it.
The agency says including more income could make premium payments fairer and help support health insurance finances as the population ages.
Critics say premiums on tax-favoured retirement savings could reduce the money people have for later life.
The rules and start date are not decided, and the eventual cost would depend on which income is included and any thresholds.
Experts say people should not rush to close pension or ISA accounts, since closing some pension accounts early can create tax costs.
South Korea’s National Health Insurance Service is considering charging premiums on income that is currently excluded because it is tax-separated.
The proposal could affect some income from individual savings accounts, private pensions and other sources.
The service says the change could make premium payments fairer and strengthen health insurance finances as medical costs rise with an ageing population.
Retirees and other savers have raised concerns that the change could reduce their income in retirement.
The eligible income, rules and start date have not been decided.
- Who
- South Korea’s National Health Insurance Service is considering the change.
- What
- It is considering charging health insurance premiums on some tax-separated income now excluded from premium calculations.
- When
- The specific timing is not stated.
- Where
- South Korea.
- Why
- The service says the change could make premium burdens fairer and strengthen health insurance finances.
National Health Insurance Service and supporters of broader premium rules
Retirement savers and critics concerned about the impact
Fairness
National Health Insurance Service and supporters of broader premium rules
Income should face similar premium burdens regardless of how it is taxed.
Retirement savers and critics concerned about the impact
Applying premiums to retirement and savings income could undermine incentives to prepare for retirement.
Health insurance finances
National Health Insurance Service and supporters of broader premium rules
Expanding the income base could strengthen finances as medical costs rise.
Retirement savers and critics concerned about the impact
The proposal could reduce the money retirees have available for living expenses.
This story does not have a timeline yet.
- Current annual interest and dividend threshold
- Income above 10 million won is included in premium calculations
- Potentially affected accounts
- ISA, personal pension savings and retirement pensions
- Proposal
- Premiums on uncharged, tax-separated income
- Status
- Eligibility rules and start date are undecided