[THE INVESTOR] The budget allocated to the health and welfare sectors in 2017 is set to increase 3.3 percent on-year, the Health Ministry said on Sept. 2.

The ministry said its budget for next year, subject to parliamentary endorsement, is set to increase to 55.8 trillion won (US$49.60 billion), up 436 billion won from 2016.

A large portion of the planned allocations is related to the county‘s state pension program and health insurance payments.

The payments by the National Pension Service increased to 19.94 trillion won in 2016 from 18.54 trillion won a year ago due to the increased number of pensioners.

Senior citizens are entitled to receive national pension payments after paying premiums for up to 10 years until the age of 60 during their working years.

By sector, the allocated budget for the social welfare sector is set to increase 4.5 percent on-year in 2016, while the health-related sector will decrease 2.4 percent on-year.

The spending on supporting the vulnerable social group, meanwhile, is set to inch up 1.6 percent on-year next year, the ministry said, despite social problems of a low birth trend and an aging population.

(theinvestor@heraldcorp.com)