Welfare authorities said Thursday they will ease penalty fees for defaults on social insurance payments that have been increasing every year.

Korea has four social insurance programs -- health, national pension, industrial accident compensation and unemployment. A late payment adds 0.1 percent of the total due amount as penalty per day, which increases after 30 days. The maximum penalty rate is 9 percent.

Subscribers who pay with credit cards must pay an extra 0.8 percent as a processing fee.

The Ministry of Health and Welfare and the National Health Insurance Service, which collects penalty payments, said they plan to lower the rates for both.

NHIS data for years 2012 to 2016, provided to Rep. Kim Kwang-soo, showed that penalty money increased from 139.4 billion won ($129.68 million) in 2012 to 144.9 billion won in 2013, 153.3 billion won 2014 and 157.7 billion won in 2015. It amounted to 81 billion won in the first six months of 2016.

"The penalty rate for a 30-day month reaches 3 percent, more than triple the default rate for corporate taxes. It is also higher than the monthly 1.5 percent for electricity bills and 2 percent for mobile fees," Rep. Kim said. "The rate is harsh for ordinary people who cannot afford to pay the insurance money and needs to be adjusted."(Yonhap)