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Started after the Japanese type of Separate Fund System, Korean health insurance scheme had established the selectivistic, residual and remedial welfare model, which led to the inequality in benefits and services, social unfairness in contributions and other charges, administrative inefficiency and a lot of waste of resources, inconveniences and discontents of people, and national disintegration and conflicts. What is worse, in the free private medical care market, the influence (and incomes) of the technical specialties has overwhelmingly widened over the influence (and resources) of primary care, preventive medicine, mental health, long-term care, and community medicine. For these reasons, the Korean health insurance system has recently been plunged into a very serious crisis in terms of efficiency, equity, and quality of health care services.The Korean health care system needs to be reformed into a universal, institutional, and preventive one based on the Swedish social democratic model (the citizenship and whole national solidarity). The new paradigm of health care system needs to increasingly transform the current private health care market into a public production, organization and delivery system of the services with the main emphasis on the preventive primary health care and the comprehensive community care services.