A chart shows the number of pet insurance policies in South Korea rising sharply from 51,727 in 2021 to 251,961 in 2025. Graphic by Asia Today and translated by UPI
April 15 (Asia Today) — South Korea’s pet insurance market has expanded more than threefold in the past three years, but low enrollment rates continue to limit its growth, prompting insurers to step up marketing efforts.
According to industry data, the number of pet insurance policies in force reached 251,961 last year, up 55.4% from a year earlier. The figure has increased about 3.5 times from 71,896 in 2022.
New policy subscriptions have also risen steadily, while total premiums surpassed 100 billion won (about $75 million) for the first time, jumping from 28.8 billion won (about $21 million) in 2022 to 129.1 billion won (about $97 million) last year.
Despite the rapid growth, the market penetration rate remains low. Data from the KB Financial Research Institute show that only about 2-3% of pets are insured.
As of late 2024, about 15.46 million people in South Korea owned pets, with an estimated 7.63 million dogs and cats nationwide.
The low adoption rate contrasts with more mature markets such as Japan, where the pet insurance sector is valued at around 1 trillion won (about $750 million).
Industry officials say the market still has strong growth potential, driven by rising pet ownership and increasing veterinary costs. Government data show the average monthly veterinary expense per pet is about 37,000 won (about $28), though costs vary widely by clinic.
To raise awareness, insurers are expanding promotional efforts. Companies are launching supporter programs, hosting offline events and collaborating with influencers and pet trainers to reach potential customers.
For example, a pet-focused insurer recently launched a supporter program in which participants share their experiences using insurance products. Other companies have held in-person promotional events and partnered with well-known dog trainers to produce online content.
Analysts say high premiums and limited coverage remain key barriers. Calls are also growing for standardized veterinary pricing to reduce uncertainty in medical costs.
“As pets are increasingly seen as family members, interest in their health care is rising,” an industry official said. “Insurers are working to tap into latent demand by expanding coverage and improving price competitiveness.”
— Reported by Asia Today; translated by UPI
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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260416010004872