"One Trip to the Vet Costs a Million Won"... Pet Owners Turn to Savings Accounts Over Lump-Sum Expenses [Week+Money+Talk]

Rising Veterinary Costs Increase Financial Burden on Pet Owners
Growing Trend of Preparing Pet Funds in Advance

Editor's NoteWe are living in a time when a single serving of pork belly costs 20,000 won and a bowl of jajangmyeon is 7,500 won. The 2024 Consumer Price Index stands at 114.18 (with 2020 as the base year at 100), and in 2025, consumers continue to face heavier grocery bills due to persistent high inflation. Through our "Week+Money+Talk" series, we aim to share stories about changing prices and how they directly impact our wallets.

The cost of veterinary care for pets has nearly doubled over the past two years, increasing the financial burden on pet-owning households. As a result, interest in "pet insurance" is rising. However, many households remain hesitant to enroll due to limited coverage and high premiums. Some are opting for "pet savings accounts" instead, as a way to ease the burden of veterinary expenses.

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Average Pet Medical Expenses Reach 1.02 Million Won... Pet Insurance Enrollment Rate at 12.8%

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According to the "2025 Korea Pet Report" by the KB Financial Group Management Research Institute, the average veterinary expense for pets over the past two years was 1,027,000 won, nearly double the 577,000 won reported in 2023. Among pet-owning households, 26.2% spent over 1 million won on average, a 7.4 percentage point increase from the previous survey (18.8%), driving the overall rise in average expenses.

As veterinary costs rise, interest in pet insurance is also increasing. Pet insurance is a product that covers hospitalization, outpatient care, and surgery for pets, mainly compensating for expenses due to illness or injury. However, most policies exclude coverage for preventive vaccinations, vocal cord surgery, neutering, and dental treatments. With additional riders, compensation for physical or property damage caused by pets to others is also possible.

However, coverage is limited and the insurance structure itself places a significant burden on consumers. Most pet insurance policies are renewed annually, and premiums can increase each year depending on the pet's age and health status. Monthly premiums vary widely, from around 20,000 won up to 80,000-90,000 won.

Given these circumstances, the actual enrollment rate for pet insurance is only 12.8%. While 91.7% of pet-owning households were aware of pet insurance, the main reasons for hesitation were: ▲ the burden of monthly premiums (50.6%), ▲ perceiving it as unnecessary (37.4%), and ▲ limited coverage (35.8%).

In particular, dissatisfaction arises from the fact that frequently incurred expenses, such as vaccinations and dental treatments, are not covered. This reality is often discussed in pet owner communities. One owner of a three-year-old Bichon Frise shared, "Whenever my dog ate snacks, he would chew on only one side, so I took him to the vet and he was diagnosed with early-stage periodontal disease. Dental care for dogs is expensive, and there are almost no insurance policies that cover periodontal disease, scaling, or tooth extraction." Ultimately, pet owners are hesitant to enroll in pet insurance due to the high premiums and limited benefits, despite feeling burdened by veterinary costs.

Some Opt for Savings Accounts Instead of Pet Insurance

Given these circumstances, more households are setting up dedicated "pet funds" through savings accounts instead of purchasing pet insurance. This is especially common among those who rarely visit animal hospitals or whose pets suffer from conditions not covered by insurance.

Banks are responding by launching a series of pet savings products. Last month, Saeram Savings Bank introduced the "Petmily Regular Savings Account" for customers with pets. By submitting documentation such as a pet registration certificate or vaccination record, customers can receive an interest rate of up to 5.0% per annum. Hana Bank also offers the "Pet Love Savings Account," which provides an annual interest rate of up to 2.8% along with free pet liability insurance. KB Kookmin Bank's "Pet Happiness Savings Account" starts with a base rate of 2.75% per annum, but customers can receive a preferential rate of up to 4.75% per annum by registering their pet's information (0.2%) or using pet-related service plans (0.2%).

Meanwhile, local governments are expanding support measures to alleviate veterinary costs for pet owners. For example, Yangcheon District in Seoul provides veterinary expense support to elderly residents facing financial hardship, while Sacheon City in South Gyeongsang Province has been running a veterinary expense support program for low-income pet-owning households since February this year.