The health ministry said Tuesday it will freeze state health insurance premiums for next year for the first time in seven years.

The decision was made as the financial status of the insurance program is “relatively stable” and the government seeks to ease the people’s economic burdens amid high inflation and interest rates, according to the Ministry of Health and Welfare.

The monthly premium rate for salaried workers will remain unchanged at 7.09 percent, and that for non-corporate subscribers will also be frozen, it added.

It will mark the third time for South Korea to freeze the premium, including the decisions made for 2017 and 2009.

By law, South Koreans are required to join the insurance scheme, and foreigners living in South Korea can also subscribe to it.

According to the National Health Insurance Service, the health insurance surplus is forecast to reach 1.98 trillion won (US$1.46 billion) this year, and the accumulated fund is expected to come to over 25.85 trillion won.

The health insurance balance has been in the black for the past two years due mainly to the falling demand for medical services amid the COVID-19 pandemic, ministry officials said.

Source: Yonhap News Agency