The Ministry of Health and Welfare said on the 21st that a pilot project for the "dementia safe asset management service," under which a public institution manages the assets of seniors with dementia, will be launched.
The dementia safe asset management service is a system in which the National Pension Service manages seniors' assets, and the pilot project will begin on the 22nd of this month. It was introduced as economic abuse—such as arbitrarily using the assets of nursing home patients—has emerged as a problem. The assets held by dementia patients aged 65 or older in Korea are estimated at 154 trillion won.
This service is intended for seniors who have difficulty managing their assets due to dementia or mild cognitive impairment, or who are expected to face such difficulties. The service begins when the senior or a family member visits a National Pension Service branch to apply, or when a dementia-related institution such as a nursing facility makes a referral.
Afterward, the National Pension Service draws up a financial support plan through counseling, including how the beneficiary will spend monthly living expenses. Beneficiaries can receive funds on a regular basis and use them according to the financial support plan. If the beneficiary requests a large expenditure not in the plan or termination of a contract during this process, the request must be reviewed by the dementia safe asset management committee under the service. Any remaining assets after death are paid to legal heirs such as the spouse. The service regularly oversees the execution of distributions and visits beneficiaries semiannually to assess their status.
The scope of entrusted assets is limited to cash, named bonds, and cash-equivalent assets such as reverse mortgages. The maximum amount that can be entrusted is 1 billion won. Seniors receiving the basic pension can use the service free, while others must pay an annual fee of 0.5% of the entrusted assets.
An official at the Ministry of Health and Welfare said, "Starting with this year's pilot project, we plan to proceed with the main project in 2028 after two years of review."