A three-tiered health care delivery system has been established on the village, town, and county levels in each of three demonstration areas and are staffed, respectively, by village health aides (VHA), community health aides, and practitioners (CHA and CHP). Of late, CHA curative contacts have increased dramatically in all project areas and CHA curative contacts have increased as well. Town-level primary health units (PHU's) maintain excellent health records and along with county-level community health centers (CHC) possess ample, good quality equipment, although the PHU drug supply is excessive given the expertise of CHP's. Care has been upgraded by adding better-trained physicians to the program, constructing modern and specialty clinics, practicing immunization, and maintaining a structured referral system. Preliminary studies show that the user rate in the target areas has increased substantially to 64% and that average health costs in the project area were lower than in a control area not covered by the project. It was recommended to consider assigning physicians to CHC's which offer a more stimulating environment and from where physicians could direct specialty clinics, review drug inventories and remove superfluous medicines; give CHP's and CHA's civil service status and adequate pay and increase efforts to retain them; have the Korean Health Development Institute provide technical advice and administrative control over the replication of low-cost IHCDS's and have the GOK vigorously pursue alternative funding sources to continue the project after A.I.D. funding ceases. An outline for a final evaluation of the project is appended.