Assessing the Impact of COVID-19 on National Productivity in Korea: A Fall 2023 Analysis

OBJECTIVES: A 2022 study shows half of COVID-19 patients in Asia exhibit long-COVID symptoms within a year after infection. COVID-19 continues to reduce productivity due to the costs associated with absence during the acute phase. This study aims to estimate annual treatment costs and productivity losses due to COVID-19 among the national population in South Korea in the Fall of 2023.

METHODS: Total societal cost was calculated based on direct medical costs and productivity losses of COVID-19. Direct medical costs included the average outpatient, inpatient and post-COVID care costs, which were calculated using 2023 COVID-19 incidence rate and clinical outcomes data for the national population. Clinical outcomes were estimated that among COVID-19 patients, 98.45% (9.8 million) had outpatient visits, 1.53%(153,000) were hospitalized, and 0.02% (2,000) died. Assuming that all COVID-19 patients (10 million) incur post-COVID related expenditures, we estimate that 2.1% of employed patients miss work due to severe long COVID symptoms. In 2023, South Korea’s employed population aged 18-64 was 25.16 million. Productivity losses were estimated from wage loss due to absenteeism of employed population. Absenteeism was 5 days for outpatient, 25.58 days for inpatient treatment and 24.66 days for severe long COVID. The friction days approach applied 42.8 days to estimate replacement cost.

RESULTS: Total societal cost from the 2023 COVID-19 outbreak in South Korea was estimated at $5.1 billion. Direct medical costs exceeded $1.0 billion: $390 million for outpatient care, $170 million for inpatient care, and $450 million for post-COVID care. Productivity losses were calculated $4.1 billion for absenteeism and $1 million for replacement costs. For absenteeism, outpatient care constituted 89%, while hospitalizations plus long COVID made up the remaining 11%.

CONCLUSIONS: This study indicates that treatment cost and productivity loss due to COVID-19 remains substantial, suggesting the need for proactive national vaccination policies to prevent such losses.