Total medical expenses among seniors South Korea 2012-2022

In 2022, South Korea's elderly population is facing rapidly increasing medical expenses, with total spending reaching around 45.8 trillion won. This marks a staggering 178 percent increase over the past decade, reflecting the growing healthcare needs of the country's aging population. This is putting pressure on the country’s overall spending on healthcare and social welfare. Further, many still struggle financially and cannot solely survive off their savings and pensions.

Demographic shift fueling healthcare costs

South Korea's elderly population is a key factor behind the growing medical expenses. By 2022, the number of people aged 65 years and over had reached approximately nine million. This figure is projected to more than double by 2050, potentially reaching 19 million by then. The elderly are taking up an increasing share of the total medical expenditure, rising from around 34 percent in 2012 to over 44 percent in 2021. As this demographic continues to expand, healthcare demands and associated costs are likely to rise further, putting pressure on both public and private healthcare resources.

Korean society’s role in senior social welfare

A 2022 survey found that the majority of people considered the responsibility of caring for elderly parents to lie with the combined forces of family, society, and the government. However, almost one in four held the view that this was primarily the responsibility of each individual family. A similar share of retired seniors was partially financed by support from their children or other relatives, though this number was far lower among those who were still working. Despite this, and the large annual increase in total national pension benefits paid out every year, 61 percent of seniors reported having insufficient means to live comfortably. Such insufficiency has partly led to South Korea having one of the highest relative elderly poverty rates among all OECD countries.