Seoul: A pilot program has been initiated to manage the assets of dementia patients in South Korea, marking a significant step towards establishing a public trust system for such assets. The initiative addresses the growing concern of asset mismanagement as the country's population ages rapidly, with the number of dementia patients aged 65 or older expected to exceed 1 million this year. The estimated assets held by these patients amount to about 154 trillion won ($104 billion) as of 2023.
According to Yonhap News Agency, the program aims to prevent misuse or idleness of assets, which can lead to poverty or make patients targets of fraud and financial exploitation. A case highlighting the issue involved a dementia patient in his 90s whose substantial cash savings were found in a discarded treadmill. Such scenarios underscore the broader implications on families and the state if not addressed.
The existing public guardianship system, introduced in 2018, has faced challenges in professional asset management. Private-sector trust products are mainly focused on inheritance and require individuals to enroll while they still have full decision-making capacity. This gap necessitates a public mechanism to manage assets for those unable to do so themselves.
The pilot program involves the National Pension Service signing trust agreements with patients or their families. It provides living and care expenses based on personalized financial plans and manages remaining assets through inheritance procedures. Initially targeting elderly dementia patients receiving basic pensions, the program is set to expand gradually. The government plans a two-year pilot followed by a full-scale program launch in 2028.
This period will be crucial for evaluating the effectiveness of the public trust system and identifying areas for improvement. While currently led by a public institution, the system should eventually integrate with private financial firms to leverage public credibility and professional asset management expertise. Authorities must ensure the system aligns with existing inheritance and guardianship frameworks and continue updating legal and institutional arrangements for an aging society.
Ultimately, the goal is not just to protect dementia patients' assets but to use them effectively for treatment and care, enhancing patients' quality of life.