THE ROLE OF HEALTH-INSURANCE IN THE GROWTH OF THE PRIVATE HEALTH SECTOR IN KOREA

The Korean health care system has been recognized by other countries f or its rapid expansion of national health insurance. The government's policy of promoting the private sector, relying on market forces for v arious allocation decisions, and using the fee-for-service payment sys tem has created a number of challenges for the Korean health system. A mong these are rapid growth of health care expenditure, proliferation and duplication of medical technology, and lack of access for low-inco me groups due to high out-of-pocket payments for services covered by i nsurance. A number of recommendations are made concerning national hea lth policy, modifying health insurance, and developing political conse nsus for bringing about health reform.