Korea was the second Asian country to introduce universal long-term care insurance in an attempt to meet the challenges posed by its ageing population. This article presents an overview of the key issues that were involved in designing and implementing the new Korean system and the lessons that have been learned. Although the government reformed the long-term care system, a number of new challenges have emerged, such as its limited coverage and the unethical behavior of service providers. These problems appear to be closely associated with the scheme's initial design flaws and the government's passive responses to these problems.

One of the main reasons for reforming long-term care systems is a deficient existing service infrastructure for the elderly. This article provides an overview of why and how the Korean government expanded long-term care infrastructure through the introduction of a new compulsory insurance system, with a particular focus on the market-friendly policies used to expand the infrastructure. Then, the positive results of the expansion of the long-term care infrastructure and the challenges that have emerged are examined. Finally, it is argued that the Korean government should actively implement a range of practical policies and interventions within the new system.

Since the early 2000s, there has been considerable expansion of the Korean welfare state. In particular, a new compulsory long-term care insurance (LTCI) for older people was introduced in 2008, facilitating the socialization of long-term care (LTC) services at a national level. This study aims to examine how the Korean welfare state has coped with the increasing LTC needs of older people caused by introducing and implementing a new LTCI system and reforming it. This study argues that the LTCI was designed to meet limited objectives, such as providing minimal coverage and affording private for-profit market forces a predominant role in the provision of LTCI services.Owing to the implementation of the insurance, a number of achievements and shortcomings with respect to the LTCI have become evident. To address the challenges that have emerged, the Korean government announced a reform plan in 2012, which emphasized changes such as increasing coverage and improving the quality of services. Although the reform plan also shows a number of fundamental limitations, it is expected to contribute to the development of the Korean LTCI to a certain extent.

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