The National Health Insurance Corporation faced bankruptcy in March 2001 due to increases in medical costs, unreasonable efforts to integrate the workplace and regional health insurance systems and the complete separation of doctors and pharmacists duties concerning outpatient medication. As a result, Choe Seon-jeong the minister of health and welfare resigned and the government expanded the budget for the regional health insurance system as a countermeasure for the financially handicapped NHIC. However, the corporation's deficit for the year has reached W1.8trillion, and moreover, the pension system for government employees and soldiers is in trouble financially.
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