A Welfare State Where People Are Happy and Healthy

- 2025 Action Plan of the Ministry of Health and Welfare -

The Ministry of Health and Welfare (MOHW, Minister Cho KyooHong) has announced its 2025 Action Plan.

Despite challenging economic conditions, the ministry has strengthened protections for socially disadvantaged groups. It raised the standard median income by record rates for three consecutive years (from 5.47% in 2023 to 6.09% in 2024 and 6.42% in 2025). Additionally, for the first time in seven years, the eligibility threshold for basic livelihood support was eased (from 30% to 32% of the standard median income in 2024), thereby reinforcing the minimum standard of living. Support programs were also expanded for specific target group through various initiatives: raising the stipend for young adults preparing for independence (from KRW 350,000 in 2022 to KRW 500,000 in 2024), creating over one million job opportunities for seniors, and launching a 24-hour, one-on-one care system for individuals with severe developmental disabilities.

To address the crisis in essential and regional healthcare, the government announced the Four Healthcare Reform Tasks (February 2024) and subsequently released the Phase 1 Implementation Plan (August 2024) for immediate challenges. In an effort to quickly secure essential healthcare personnel, medical school admissions for 2025 was expanded, and a pilot program for PA (physician assistant) nurses has been launched. The government initiated a restructuring project (through 2027) to enable tertiary hospitals to concentrate on critical and emergency care. Additionally, a five-year, KRW 30 trillion investment plan (KRW 10 trillion of public finance + KRW 20 trillion(+α) from the National Health Insurance) has been established to bolster essential and regional healthcare services.

In response to demographic changes, the government has enhanced support for childbirth and childrearing while also advancing pension reform. Insurance coverage for infertility treatments has been expanded to 25 times per birth (previously limited per couple), and new funding was introduced for critical fertility tests. The government implemented Birth Notice and Protected Childbirth programs (July 2024) to safeguard the lives of all children, while introducing and expanding the Parental Allowance to strengthen support for infant care. The government established the 5th National Pension Comprehensive Plan to enhance sustainability, intergenerational equity, and income security. This was followed by the introduction of a unified government pension reform plan (September 2024) - the first of its kind in 21 years.

Guided by the vision of “A Welfare State Where People Are Happy and Healthy,” the ministry will focus on four core tasks in 2025.

【Strenthening protection for the vulnerable groups】

The government will increase the standard median income - which determines eligibility for 74 welfare programs, including basic livelihood benefits - by a historic rate (6.42%), expanding access to welfare services. For a four-person household, the monthly basic livelihood benefit will increase by KRW 118,000. The family support obligation contribution rate used in medical allowance eligibility calculations will be reduced for the first time in 16 years (from 30% or 15% to 10%), thereby enhancing support for vulnerable groups’ living and medical expenses.

Support programs will be expanded with targeted assistance for specific vulnerable groups. The government will create approximately 1.1 million senior job opportunities and increase both basic pensions and disability pensions (social security benefits) by 2.3%. To strengthen children's rights, domestic and international adoption procedures - currently managed by private adoption agencies - will be restructured under state supervision (in July 2025 through the Special Act on Domestic Adoption and the Special Act on Intercountry Adoption). Furthermore, emergency protection benefits (KRW 1 million per month, for approximately three months) will be introduced to ensure newborns from protected births receive safe care until their final care institution is determined.

【Seamless identification of at-risk households】

The government will establish advanced criteria for identifying potential at-risk households by evaluating 47 types of risk information based on importance and usability, thereby improving the accuracy of at-risk household identification. AI-assisted initial consultations will increase significantly (from 220,000 to 500,000 cases annually) including through expanded simultaneous counseling channels. The emergency safety service for elderly individuals living alone and persons with disabilities will also expand (from 270,000 to 300,000 devices). Additionally, the mobile "Haengbok-E-eum" (social security information system) will extend nationwide, enabling immediate counseling and benefit applications during on-site investigations.

【Reinforcing support for self-reliance out of poverty】

To promote sustainable self-reliance from welfare through employment, the government will introduce a Self-Reliance Success Grant providing up to KRW 1.5 million annually to participants who successfully complete livelihood benefits programs. To enhance case management, the number of self-reliance case managers will be doubled, with managers assigned to 250 community self-reliance promotion centers nationwide.

The government will also strengthen asset-building programs to create more opportunities for economic mobility. The Child Development Account, which supports early social integration of disadvantaged children, will expand to include more lower-income families (from 206,000 to 273,000 children). The Youth Tomorrow Savings Account will broaden its income criteria to accommodate 40,000 new enrollees. To encourage sustained employment among lower-income households, government contributions to the Hope Savings Account II will increase incrementally* based on enrollment duration.

* (2024) KRW 100,000 per month → (2025) KRW 100,000 for the 1st year → KRW 200,000 for the 2nd year → KRW 300,000 for the 3rd year

【Creating visible outcomes in healthcare reform】

Efforts will focus on maintaining a robust emergency medical system to ensure seamless care for critically ill and emergency patients. This includes measures such as preparing a Lunar New Year Emergency Medical Plan. The government will also continue engaging in dialogue and persuasion with the medical community to normalize the healthcare system and resolve current conflicts.

To improve public acceptance of healthcare workforce supply and demand projections, a task force for workforce projections by profession* will be established and operated. Additionally, government support for trainee doctors will be significantly expanded** with measures such as increased training allowances and the pilot projects to improve their working conditions, including the one reducing weekly working hours from 80 to 72, will be initiated.

* (Phase 1) Doctors and nurses → (Phase 2) Dentists, Korean medicine doctors, and pharmacists will be included sequentially

** A budget of KRW 233.2 billion has been newly allocated for projects to improve the training environment for trainee doctors, including expanded support for trainee doctors (from 1 specialty to 8 specialties) and fellows (from 1 field to 2 fields) with training allowances (KRW 41.5 billion)

A "Patient Advocate System" (tentative name) will be introduced as part of comprehensive reforms to the medical dispute resolution system, aiming to strengthen patient rights and improve access to remedies. Additionally, measures will include the establishment of a "Medical Accident Review Committee" (tentative name) to streamline investigations and the development of a specialized criminal justice framework for medical accidents, focusing prosecution efforts on cases of gross negligence in essential medical services.

【Providing capable essential and regional healthcare】

A regionally comprehensive healthcare delivery system will be established. By 2027, all tertiary hospitals (47 facilities) will be restructured to focus on severe, emergency, and rare diseases. Additionally, focused support will be provided to regional general hospitals with comprehensive and advanced medical capabilities, while specialized hospitals will be restructured to prioritize essential medical fields such as burn care and cerebrovascular treatment. Initiatives will also aim to establish and reinforce* the pivotal role of regional coordinating medical institutions, such as national university hospitals, as key providers of regional essential healthcare. Public hospitals serving as regional hubs will receive funding** to cover operational costs, facilities, and equipment for essential medical services. A pilot program for Regional Essential Doctors will be introduced (providing 96 doctors with allowances of KRW 4 million per month) to encourage long-term service by skilled specialists in regional areas. This will be complemented by expanding the regional allocation of trainee doctors. To enable stable investment in strengthening essential and regional healthcare systems, a Special Account for Essential Healthcare will be established.

* Includes KRW 81.2 billion to enhance the definitive treatment capabilities of regional coordinating medical institutions and KRW 11 billion to bolster research infrastructure at national university hospitals

** A total of KRW 215.1 billion, including KRW 62.1 billion allocated for operational expenses in essential healthcare

By 2027, the low-reimbursement structure within the national health insurance fee schedule will be eliminated. In the first half of 2025, fee increases will focus on approximately 1,000 categories related to surgeries, procedures, and anesthesia. A foundation for medical cost analysis will be established to enable data-driven fee adjustments, with the revision cycle for relative value units (RVUs) significantly shortened from 5–7 years to 2 years, ensuring a system for continuous fee updates. Additionally, payment systems, including retrospective payments and policy-driven fees, will be reformed to encourage investments in the quality and value of healthcare. Targeted investments will be directed toward essential medical services and underserved areas, and the fee conversion factor will be restructured to resolve the inversion phenomenon in reimbursement rates across different types of medical institutions.

To ensure timely access to critical healthcare services, the criteria for designating emergency medical institutions will be revised* to prioritize definitive treatment capabilities for severe conditions. Additionally, 10 new regional cardiovascular and cerebrovascular disease centers will be designated. Plans include the introduction of acute care-focused hospitals (July 2025) and the expansion of regional mental health emergency centers (from 11 to 14), reinforcing the mental health emergency response system.

* Current criteria focus on staffing, facilities, and equipment → Revised criteria will incorporate definitive treatment capabilities for severe conditions

【Alleviating the burden of medical expenses】

Insurance coverage for medically necessary treatments that were previously not covered will be expanded, while oversight of non-covered medical care at risk of overuse or misuse - including pricing and treatment criteria - will be strengthened through its designation as a “Managed Benefit” (tentative name). The time required for health insurance listing of drugs treating severe and rare diseases will be shortened (from 210 days to 150 days). Additionally, support will be increased for home care expenses for severely ill children (e.g., oxygen saturation monitors) and for assistive devices for individuals with disabilities (e.g., specialized strollers).

Preventive healthcare measures will also be strengthened to reduce future healthcare costs. A pilot project for primary care innovation will be launched, enabling clinic-level medical institutions to offer integrated and continuous health management services, with performance-based rewards. Additionally, financial support for diagnostic testing of major diseases requiring timely treatment, such as hepatitis C, will be expanded, including waivers for copayments on first-visit diagnostic fees. On-site medical care services will also be introduced for residents of social welfare facilities.

【Building a healthcare environment that addresses future needs】

The evaluation system for medical institutions will shift to performance-based model aligned with their roles and functions. This initiative aims to establish a more equitable reward system by prioritizing performance over treatment volume. To reduce administrative burdens, overlapping indicators related to staffing and facilities will be streamlined. Additionally, a data collection system that automatically generates evaluation indicators using only key parameters will be piloted in the first half of 2025.

Efforts will also focus on developing systems that adapt to the evolving healthcare environment. To improve medical accessibility, a framework for telemedicine will be institutionalized. The PA nurse system will also be formalized, alongside efforts to expand the pool of skilled nurses through additional training programs* for PA nurses (scheduled for June 2025 under the Nursing Act). Furthermore, additional workforce resources for comprehensive nursing and care services will be deployed at medical institutions, with outstanding institutions rewarded appropriately based on their performance. Unnecessary regulations in medical settings will be revised to enhance patient convenience, including expanding the exceptions** to mandatory health insurance identity verification requirements.

* (2024) One training institution in the Seoul Metropolitan Area (500 trainees, KRW 500 million) → (2025) Regional expansion (1,000 trainees, KRW 1 billion).

** (Current) Exceptions for nine categories, including emergency patients and pregnant women → (Expanded) Adding patients with severe or rare diseases as eligible exceptions

【Ensuring a Comfortable Later Life in Familiar Surroundings】

To facilitate a comfortable later life in familiar surroundings, an integrated care support system will be established to comprehensively connect and deliver medical, nursing, and caregiving services. In preparation for a nationwide rollout in March 2026 (aligned with the enforcement of the Act on Comprensive Support for Care Services), pilot projects will be expanded to include additional regions, target groups, and services. By 2026, a fully integrated support system will be developed to provide tailored assistance from the application stage to service delivery. Additionally, a standard ordinance draft and operational guidelines will be prepared and distributed to local governments to ensure the smooth implementation of integrated support services.

* (Regions) Expanding from 32 in 2024 → 47 in 2025 → 229 cities/counties/districts in 2026
(Target groups) From seniors → Seniors + Persons with disabilities
(Services) From daily living assistance → End-of-life and palliative care at home (with model development underway)

Community-based elderly care services will also be expanded. The usage limits for home-based care services for recipients with severe conditions will be increased*, while the number of integrated home care agencies and home care medical centers will grow** to strengthen long-term care services for home-based settings. To address the evolving needs of the new generation of elderly citizens, minimum service standards for senior welfare housing will be established, and ways to improve approval requirements for nursing homes in underserved areas will be explored.

* (Grade 1) KRW 2,069,900 → KRW 2,306,400; (Grade 2) KRW 1,869,600 → KRW 2,083,400

** (Integrated home care agencies) From 150 → 200; (Home care medical centers) From 95 → 150

【Enhancing Care for Persons with Disabilities】

To support the daily lives of persons with disabilities and their families, two Emergency Care Centers for individuals with severe developmental disabilities will be established, providing 24-hour care during urgent situations such as when caregivers are hospitalized. In addition, activity support services and day/after-school activity services will be expanded*, and the care support unit cost for children with severe disabilities will increase (from KRW 12,140 to KRW 14,140).

* (Activity support) Beneficiaries: From 124,000 → 133,000;
Additional benefit service hours: From 195 → 205 hours
(Day/after-school activities) Beneficiaries: From 21,000 → 23,000;
Age eligibility: From 18–65 years → 18 years and older

Health and medical services for persons with disabilities will also be strengthened. A medically intensive residential facility offering 24-hour medical care will be piloted. Eligibility for developmental rehabilitation services will be expanded by increasing the unregistered age limit (from under 6 to under 9 years old) and raising the number of beneficiaries (from 86,000 to 104,000). Additionally, the 1st Comprehensive Healthcare Management Plan for Persons with Disabilities will be formulated to include medical access, rehabilitation, and health management.

【Addressing New Demands for Care Services】

To better understand and prevent solitary deaths, a Solitary Death Risk Response System will be established, with 114 newly deployed case managers. A legal framework will be established to support at-risk youth, and eligibility for treatment cost support* (up to KRW 1 million) for young individuals who attempt suicide who agreed to case management will be eased. Additionally, psychological counseling services for individuals experiencing emotional challenges, such as depression or anxiety, will be expanded (targeting 160,000 beneficiaries).

* Current 91 designated medical institutions as Life Protection & Crisis Response Center -> All emergency medical centers nationwide

Care infrastructure will also be reinforced. By the first half of 2025, an analysis of social service demand and supply across regions will be conducted, followed by the development of service expansion measures to address regional disparities in the second half of 2025. Separate industrial statistics will be generated to provide an accurate understanding of the social services sector. Furthermore, the Social Service Quality Certification System will be officially launched to enhance user choice and promote voluntary quality improvements among service providers.

【Building a Sustainable Health and Welfare System】

A comprehensive pension reform plan will be implemented to enhance sustainability, intergenerational equity, and income security. The government will actively support prompt parliamentary discussions based on its reform proposal (September 2024) and strengthen public outreach to build consensus for reform. Moreover, a benchmark portfolio* aimed at increasing long-term return rate by 1 percentage point will be introduced.

* (2024) Alternative investments limited to predefined asset classes (e.g., real estate, infrastructure, private equity) → (2025) Alternative investments expanded to include diverse asset classes contributing to return rate (e.g., private debt)

Efforts will also focus on improving the sustainability of the National Health Insurance system. Initiatives include reviewing a transition to a fixed-rate system for property-based contribution system for regional subscribers to enhance fairness and conducting and publishing medium-term fiscal projections for health insurance annually. A plan will also be developed to manage and operate appropriate reserves, ensuring transparent and sound financial management. Furthermore, to create a sustainable health security system, measures will include rewarding the innovation value of new drugs and ensuring stable supply chains by promptly and appropriately increasing the prices of medicines in unstable supply.

Social discussions will be initiated to reconsider the definition of senior citizens, taking into account evolving societal perceptions, the advent of a super-aged society, and the emergence of active seniors.

【Reducing the Burden of Childbirth and Childrearing to Boost Birth Rate】

Essential fertility testing will be made accessible to all men and women aged 20-49, regardless of region or marital status*. Financial assistance for gamete freezing and preservation will also be newly introduced for individuals at risk of permanent infertility (KRW 2 million for women, KRW 300,000 for men).

* (Regions): Expansion from 16 cities/provinces → Nationwide
(Target population): From 130,000 → 200,000 individuals
(Support frequency): From one time → Up to three times

Cesarean section costs will be fully covered (reducing copayments from 5% to 0%), aligning with the support for natural delivery. The evaluation of postpartum care facilities will be made mandatory, with results publicly disclosed to enhance service quality. Infertility and prenatal counseling centers will also be expanded (from 10 to 12 centers) to provide stronger psychological and emotional support for couples dealing with prenatal and postpartum depression.

To ensure early intervention, additional reimbursement rates for rehabilitation therapy for children aged three years and younger will be expanded (30%+α), and copayments for outpatient care for premature infants will be further reduced (extending coverage beyond five years after birth to include the months born prematurely). Additionally, childcare service positions will be created through senior employment programs (5,000 jobs), and the number of “Together Care Centers” for elementary school students will be increased (from 1,203 to 1,372 centers).

【Securing Future Growth Drivers Through Biohealth Development】

Approximately KRW 1 trillion will be invested in healthcare R&D*, representing a 17% increase from the previous year, with a focus on mission-driven projects and international collaborative research to reform the healthcare R&D framework**.

* (Entire R&D projects overseen by the MOHW) KRW 842.8 billion → KRW 985.8 billion

** (Korean ARPA-H) KRW 49.5 billion → KRW 63.2 billion;
(International collaborative research) KRW 136 billion → KRW 197.6 billion

Key regulations in each industry will be revised to promote global competitiveness. Certification criteria for innovative pharmaceutical companies will be updated, and a system enabling immediate market entry for medical innovative technologies will be introduced by September 2025. In a bid to invigorate the attraction of inbound international patients, the Ministry of Health and Welfare is slated to institutionalize the regular survey on the patient-attraction channels by amending "Comprehensive Guidelines on Overseas Expansion of Healthcare Services" (scheduled for the first half of 2025) and to draw up a “National Strategy for Promoting the Overseas Expansion of Korean Healthcare”.

Efforts will be made to unlock new added value through the utilization of medical data and advanced regenerative medicine. MyHealthWay (MyData in healthcare) will be fully integrated across all tertiary hospitals, and the number of participants in the national integrated bio big data project will increase significantly, from 19,000 to 190,000. To ensure the safe and effective use of healthcare data, legislation of the "Digital Healthcare Act(tentative name)" will be pursued, enabling value creation while maintaining data security. For advanced regenerative medicine to address rare and intractable diseases, an implementation system will be established by February 2025, including pre-approval reviews, cost monitoring, and adverse reaction reporting. ///