Uncontrolled ""Non-Covered"" Medical Costs Skyrocket to ₩22 Trillion, Illegal Kickbacks Thrive for a Decade Undetected Amidst Government Oversight Failures

South Korea's out-of-pocket medical expenses for non-covered services surged 39.7% to 21.8 trillion won in 2024 from 15.6 trillion won in 2020, according to an investigation by JaeKyung Ilbo. Despite a government-introduced "Managed Benefit" system in February 2026 that standardized costs for three procedures, illegal medical fee kickbacks ranging from 20-40% of treatment costs remain widespread and undetected over the past decade, exposing critical flaws in regulatory oversight.

Civic groups including the Citizens' Coalition for Economic Justice have criticized the unchecked practices as encouraging overbilling and undermining health insurance system stability. The National Assembly Research Service noted zero reported violations of kickback prohibitions under the Medical Service Act from January 2015 to March 2026, highlighting enforcement gaps despite legal authority for on-site inspections. Officials attribute the surge partly to increased private health insurance activation and healthcare providers' profit-seeking through "mixed treatment" practices.