Reducing 2.8 trillion won in medical expenses just by going to the mountains

- KFS analyzed the substitution effect on medical expenses of hiking and its effect on economical & social aspects





Korea Forest Service (Minister, Chung Kwang-soo) requested the services of the Chungbuk National University''s Industry Academic Cooperation Foundation (Researcher, Prof. Shin Won-sub) to conduct a survey on 1,099 hikers by selecting some popular mountains nationwide from Last February to November. As a result, it was indicated that the effect of climbing is very high.



In accordance with responses of this survey, "the substitution effect on medical expenses of climbing activities" calculated according to the frequency of hiking activities is approximately 2.8 trillion won, and it is proved that the effect increased when climbing more than once a month.



The amount of reduction in medical expenses by climbing activities is 2.8 trillion won that is 10.2% of general medical expenses(27.6 trillion won, 2007), 8.4% of public medical expenses (33.7 trillion won, 2007), and 4.6% of national medical expenses (61.3 trillion won, 2007). Climbing activities that are not only saving medical expenses of individuals but also reducing national expenditure on medical expenses are considered one of the policy alternatives.



On the other hand, economic effect on expenditure related to climbing was estimated with the same method. The total amount of annual expenditure related to climbing per capita is 668 thousand won. According to the age group, the people in their fifties spend the most by 820 thousand won, followed by the forties who spend 780 thousand won, while the sixties spend 720 thousand won, the seventies spend 600 thousand won, thirties spend 490 thousand won, and then the twenties are known to spend 330 thousand won. According to gender group, men approximately spend 800 thousand won, and women spend 540 thousand won.



The expenses are composed of 236 thousand won (35.3%) for mountain climbing equipment, 203 thousand won (30.4%) for transportation, 180 thousand won (26.9%) for food including lodging, and 73 thousand won (4.9%) for membership & entrance fees.



Expenses related to mountain climbing of people who go hiking more than once a year are approximately at 20.3 trillion won. If we assume its collateral effects on production, added value, and employment by applying 2007 national IO announced by the Bank of Korea (July 2009), the effect on production and added value were 38.3 trillion won and 14.4 trillion won respectively, while the effect on employment and recruitment were 434 thousand won and 257 thousand won.



The economic effects of the mountain visitors those who go hiking more than once a year induce production effect that account for 3.7% of GDP in 2008, and employment effect on 1.8% of the total number of employed workers in 2008.



KFS authorities ensured that based on the survey results, KFS will promote mountain climbing activities by installing and improving hiking trails and path, and also by operating hiking schools, and will continuously make diverse efforts for the improvement of national health, reduction in national medical expenses, green growth, and solution to unemployment.





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