National Pension Service to Protect Dementia Patients' Assets from Fraud and Extortion

Pilot Project for Dementia Safe Asset Management Service Launches on April 22

The National Pension Service will launch a pilot project for the "Dementia Safe Asset Management Service" starting April 22, enabling dementia patients to manage their assets with peace of mind.

With the rapid aging of the population, the number of dementia patients is increasing, and fraud and extortion targeting elderly individuals with impaired decision-making abilities have emerged as social problems. In response, the government included the introduction of the Dementia Safe Asset Management Service as a national policy task and reflected it as part of the "5th Comprehensive Dementia Management Plan (2026–2030)."

The Dementia Safe Asset Management Service allows individuals to sign a trust contract for their assets based on their own intention, with the National Pension Service supporting the use of funds for essential expenses such as medical care, nursing care, and daily necessities.

This service targets recipients of the basic pension who are experiencing or are expected to experience difficulties managing their assets due to dementia or mild cognitive impairment. Among dementia patients under the age of 65, those in the low-income bracket, such as second-lowest income class and basic livelihood security recipients, are also eligible to apply. Elderly individuals who are not basic pension beneficiaries but wish to use the service must pay a nominal fee (0.5% per year of the entrusted assets).

Assets eligible for entrustment include cash, specified claims (such as claims for the return of lease deposits), and reverse mortgages—essentially, liquid assets. Considering the service's purpose of supporting management of daily living expenses, the maximum limit has been set at KRW 1 billion.

An official from the National Pension Service stated, "Since the purpose of introducing the Dementia Safe Asset Management Service is to proactively mitigate asset management risks arising from dementia and similar conditions, we plan to gradually expand or adjust the eligibility criteria, service fees, range of entrustable assets, and the upper limit."

Under this pilot project, priority will be given to those who need the service most urgently, based on factors such as cohabitation with family, degree of reliance on others for asset management, and suspicion of economic abuse. The process involves a National Pension Service representative consulting with applicants to assess their needs and requirements, developing a financial support plan, and then entering into a contract.

Sungjoo Kim, Chairman of the National Pension Service, said, "The Dementia Safe Asset Management Service is a public trust system in which the state steps in to ensure people do not lose their valuable assets that support their daily lives and future. We will do our utmost to ensure the successful transition from this pilot project to full-scale implementation, from establishing tailored financial support plans to thorough monitoring of expenditures."

Sungjoo Kim, Governor of the National Pension Service

This content was produced with the assistance of AI translation services.