South Korea is weighing a 2 percent increase in the national health insurance premium rate for 2026.

The policy planning committee and government sources said on Thursday that the Ministry of Health and Welfare stated that a hike of around 2 percent is necessary in its report to the new administration.

The current premium rate of 7.09 percent has remained unchanged for the past two years, and a 2 percent increase would raise the rate to 7.23 percent in 2026. For a workplace subscriber earning an average monthly salary of 3,695,063 won ($2,682.64), the monthly health insurance premium would rise by 2,586 won from 130,990 won to 133,576 won. Since employers cover half of the contribution, businesses would shoulder the same increase. The rate adjustment would apply equally to regional subscribers who are self-employed.

In addition to the proposed increase, the health ministry is seeking to remove the sunset clause on government subsidies to the health insurance fund. Under current law, the government is required to contribute up to 20 percent of the estimated annual premium income through tax revenue. This support has been subject to a sunset clause since the system’s introduction in 2007, originally set for five years and later extended four times. The most recent extension in 2022 set the expiration date at December 31st, 2027.

The ministry is pursuing the rate hike and the removal of the sunset clause in response to soaring medical expenses driven by demographic shifts, including low birth rates and population aging, as well as increased spending from the health insurance fund amid policy disputes with physicians. Additional fiscal pressure is expected from President Lee Jae-myung’s campaign pledges, such as expanded coverage for nursing care in long-term hospitals and dental implants for seniors.

A ministry official said the proposed premium increase will be reviewed at the health insurance policy deliberation committee meeting scheduled for August 2025.

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