The government will launch a pilot program in April to manage assets of dementia patients up to 1 billion won ($700,000), as so-called "dementia money"—assets held by elderly dementia patients—is projected to reach 488 trillion won by 2050.
The Ministry of Health and Welfare announced the 5th Comprehensive Dementia Management Plan (2026-2030) on Sunday after deliberation by the National Dementia Management Committee.
The government will introduce the "Dementia Asset Management Support Service," a public trust system, as a pilot program in April and expand it to a full-scale program by 2028. Under the system, dementia patients or their guardians representing the patient's wishes sign a trust contract with the National Pension Service, which then manages the funds and pays for medical expenses and necessary goods on behalf of the patient.
The ministry estimates the number of dementia patients in Korea will rise from 970,000 last year to 1.21 million by 2030 and 2.26 million by 2050.
Dementia money is projected to surge from 154 trillion won in 2023 to 488 trillion won by 2050. When assets are effectively frozen due to dementia, patients often fall victim to fraud and financial exploitation due to diminished decision-making capacity. The government aims to safely store and manage these assets. Once a trust is established, it will be linked to services from Dementia Care Centers and integrated care departments.
The program will initially support 750 basic pension recipients diagnosed with dementia or mild cognitive impairment this year, expanding to 11,000 by 2030.
The maximum trust amount is capped at 1 billion won. During the pilot phase, eligible assets will be limited to cash, claims for lease deposit refunds (jeonse deposits), and reverse mortgages, but the scope will be gradually expanded to encourage use of private trust services.
Trust fees will be free in principle, though the ministry is considering charging actual-cost fees for high-net-worth individuals.
"Private trusts tend to serve mainly those with assets over 1 billion won," said Lim Eul-gi, Director General for Senior Policy at the Ministry of Health and Welfare. "We set the cap at 1 billion won to fill the gap in asset management services. We will determine the appropriate amount and eligibility criteria through the pilot program."
