Annual Health Insurance Fee of 5 Million Won and Those Over One Year in Arrears Also Registered as 'Financial Debt Defaulters'

[Image source=Yonhap News]

[Asia Economy Reporter Lee Gwan-ju] Starting this year, regional health insurance subscribers who fail to pay health insurance premiums of 5 million KRW or more annually for over a year will be registered as 'financial debt defaulters.' Being classified as a financial debt defaulter restricts normal economic activities such as obtaining new loans or issuing credit cards.

According to the Ministry of Health and Welfare and the National Health Insurance Service on the 6th, the authorities plan to provide delinquency information of regional subscribers who have overdue health insurance premiums of 5 million KRW or more for over a year to the Korea Credit Information Services (KCIS) once every quarter, starting as early as the second half of this year.

The Korea Credit Information Services manages credit and public information provided by all financial institutions and public agencies in the country. Once delinquency information is registered with KCIS, the individual is classified as a financial debt defaulter.

The authorities expect that by transferring health insurance premium delinquency data to KCIS, many defaulters, fearing disadvantages in financial transactions, will voluntarily pay their overdue premiums, resulting in significant collection effects.