S. Korea's medical spending grows fastest among OECD countries

By Koh Byung-joon
SEOUL, July 3 (Yonhap) -- South Koreans' medical expenditure has grown at the
fastest pace among major economies over the past decade as public spending in the
sector rises amid a fast-greying population, a report showed Friday.

According to the report by the Organization for Economic Cooperation and
Development (OECD), medical spending in South Korea jumped by an annual average
of 9.2 percent between 2000 and 2007. The report was cited by Seoul's finance
ministry.
The growth rate during the period outpaced the OECD average of a 3.7 percent
expansion and marked the highest increase among the 30 member countries of the
Paris-based organization. The amount of spending was not available.
The spending growth was attributed to an increase in public expenditure on
medical care amid a fast-aging population.
South Korea is quickly becoming an aged society, accelerating the nation's
transition to an aged society. An aged society refers to a country in which more
than 14 percent of the population is 65 or older.
Government data showed that the country became an aging society in 2000 when the
ratio exceeded 7 percent. South Korea is expected to become an aged society in
2018.
South Korea's medical spending, however, accounted for a smaller portion of the
nation's gross domestic product (GDP) than other countries in the OECD, the
report showed.
In 2007, the nation's medical expenditure stood at 6.8 percent of GDP, much lower
than the OECD average ratio of 8.9 percent. Only Turkey, Mexico and Poland were
below South Korea.
Meanwhile, the number of doctors per every 1,000 people stood at 1.7 at the end
of 2007, the smallest among the OECD member countries except Turkey, the report
showed. The OECD average was 3.1.
South Korea's life expectancy had jumped by 27 years over the past four decades.
In 1960, the life expectancy was 16 years lower than the OECD average but now it
rose to 79.4 years in 2007, higher than the 79 year average for OECD member
countries, according to the report.
kokobj@yna.co.kr
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