Household’s Monthly Medical Bills Soar to $107
By Lee Hyo-sik
Staff Reporter
Households here have been tightening their purse strings over the past year to cope with the worst economic slump since the 1997-98 Asian financial crisis. But there is one area on which they spent more money than ever before, medicine and healthcare services, a rise that is attributable to the rapidly aging population and an increase in health awareness.
According to the National Statistical Office (NSO) Tuesday, local families spent a monthly average of 135,000 won ($107) on medical and healthcare services during the January to March period, surpassing 130,000 won for the first time since the statistical office began compiling data in 1970.
Medicine and other health-related expenses have continued to show an upward trend over the past year, with an average household spending 124,000 won per month in 2008, up from 122,000 won a year earlier. The top 20 percent income bracket spent a monthly average of 202,000 won in the first quarter, compared to 102,000 won by the bottom 20 percent.
Consumers here are sharply reducing expenditures across the board on falling income as a result of the ongoing economic downturn.
For the first three months of the year, households' real income, adjusted for inflation, averaged 3.12 million won per month, down 3 percent during the corresponding period of last year. Inflation-adjusted spending declined 6.8 percent to an average of 1.92 million won.
``Families have tightened their belts to deal with slower income growth amid the tight job market and depressed real estate market. However, people have no choice but to spend more on medical and healthcare services for a growing number of senior citizens. Additionally, the continuing well-being trend, despite the economic slump, raised households' health-related expenditure,'' an NSO official said.
Korea's population is aging at the fastest rate in the world, with people aged 65 or above accounting for more than 10 percent of the population. The number of people over 65 stood at 5.02 million at the end of 2008, up from 4.81 million a year earlier and exceeding the 5 million mark for the first time ever.
Korea is projected to become an aged society in 2018, as people over 65 will account for more than 14 percent of the population, putting a heavier financial burden on households to care for more senior citizens.