South Korea's health insurance deficit is expected to surpass three trillion won this year following an expansion of insurance coverage.

The National Health Insurance Service(NHIS) announced on Tuesday that the deficit would total three-point-two trillion won this year, with accumulated cash reserves likely plunging to 17-point-four trillion won by year's end from the 19-point-six trillion recorded in August.

South Korea's health insurance had marked a surplus for seven straight years until last year, when it posted a nearly 178 billion won deficit.

The NHIS, however, said that the deficit is not a worrisome sign and is within its plan following an expansion of insurance coverage for various medical services. 

According to the Health Ministry's national health insurance plan for 2019 to 2023, the national health insurance is expected to record continuous deficits throughout the period. It expects the accumulated cash reserves for the national health insurance to dwindle to around eleven trillion won by 2023.