Seoul: The national health insurance reported a deficit of nearly 4 trillion won (US$2.8 billion) in the first quarter of 2026, raising the possibility of experiencing an annual net loss for the first time in six years.
According to Yonhap News Agency, data from the National Health Insurance Service (NHIS) submitted to Democratic Party Rep. Jeon Jin-sook's office revealed that the state health insurance fund generated 22.4 trillion won and expended 26.3 trillion won during the January-March period, resulting in a deficit of approximately 3.9 trillion won. The total cumulative reserve decreased from 30.2 trillion won at the end of 2025 to 26.3 trillion won.
Historically, the NHIS recorded annual deficits from 2018 to 2020 but managed to achieve a surplus of 2.8 trillion won in 2021. This surplus increased to 3.6 trillion won in 2022 and further to 4.1 trillion won in 2023. However, annual gains contracted to 1.7 trillion won in 2024 and dwindled to 499.6 billion won last year.
The health ministry had forecasted in February 2024 that the NHIS would likely incur a net loss in 2026. The fiscal outlook for the NHIS is anticipated to be affected by government policies and other economic factors, including plans to bolster regional, essential, and public healthcare services and reforms to premium assessment standards.
The NHIS announced its intention to assess the financial impact on its future revenue and expenditures and to formulate projections based on continuous monitoring.