The National Pension Service (NPS) of South Korea announced that applications for its "Dementia-Safe Property Management Support Service"—a public trust-based initiative designed to safeguard the financial assets of vulnerable elderly individuals—have surged significantly since its pilot launch. According to recent parliamentary reports submitted to the Health and Welfare Committee of the National Assembly, monthly applicants jumped 30-fold from just 6 in April to 184 in July, with the first 4 formal contracts officially concluded.

The pilot program, which kicked off on April 22, addresses a critical societal need by protecting seniors suffering from dementia or mild cognitive impairment who struggle with financial management or face risks of economic exploitation. Through this program, the NPS transparently manages and executes participants' assets, including their monthly pension benefits and cash holdings.

Administrative momentum has picked up rapidly due to active on-site promotion and cross-agency collaboration with local dementia care centers. Cumulative inquiries surpassed 1,271 cases by early July, while monthly applicant counts steadily climbed from 34 in May and 109 in June to 184 in July.

The initial four beneficiaries who signed formal contracts highlight the vital protective role of the service. They include an isolated, single elderly dementia patient vulnerable to financial exploitation by acquaintances, and a facility-residing senior with broken family ties who previously faced uncertain estate management. For these individuals, the NPS formulated customized financial plans to regularly disburse living expenses, monthly rent, utility bills, and nursing care costs. Unexpected large-scale expenditures, such as major surgery fees, are swiftly approved and disbursed through an internal committee review to block unauthorized or fraudulent asset outflows by third parties. Furthermore, 37 additional dementia patients requiring legal guardianship are slated to sign formal contracts once court-appointed guardianship procedures are finalized.

This initiative follows the successful rollout of the Property Management Support Service for developmentally disabled individuals, which transitioned into a full-scale official program in October 2025. As of June, this companion program provided a cumulative total of 18,952 services to 223 developmentally disabled participants. The total entrusted amount reached 7.51 billion won, of which 3.38 billion won has been executed for living and care expenses, leaving a balance of 4.13 billion won. To ensure absolute transparency, the NPS established a dedicated accounting system, internalized application and monitoring duties, and introduced external financial audits for the program.

Building on these early milestones, the NPS plans to vigorously expand and refine the dementia-safe service framework. Outreach networks will extend beyond residential nursing facilities to grassroots welfare centers and home-care providers. Between August and December, the agency will conduct a research study analyzing the pilot program's performance to drive institutional improvements, actively participating in legislative discussions regarding the Amendment to the Dementia Care Act with the ultimate goal of launching the full-scale national program by 2028.

In parallel, the NPS is overhauling its asset management strategy to lower entry barriers and maximize returns for participants. Historically, entrusted funds were constrained to regular ordinary savings accounts yielding negligible interest. To overcome this limitation, the agency is shifting toward Money Market Deposit Accounts (MMDAs)—flexible deposit accounts offering short-term yields comparable to one-year time deposits. Looking ahead, the NPS intends to establish new guidelines for short-term asset management to gradually broaden its portfolio and enhance financial benefits for vulnerable beneficiaries.

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