This study is about Long-Term Care(LTC) Insurance system in Korea; it particularly focuses on the expenditure aspect. With rapid aging of the population, the demand for LTC in Korea is thought to rise sharply in the near future, which would affect the LTC expenditure. However, previous studies have mostly focused on the quality control of the service, and the effects of LTC on employment or health status, rather than expenditure aspect. The main objective of this study is to suggest a way to manage LTC expenditure efficiently. Here, we provide two systems. The first one is to introduce 'pay for performance system' into LTC institution. Under the current system, institutions receive payments from National Health Insurance Corporation(NHIC) regardless of the service quality; so, we propose pay for performance system in order to improve the service quality, which would attain efficient LTC expenditure as well. The second one is to increase the individual co-payment according to usage. Currently, the unit price of LTC service is constant; therefore, the probability for the recipient to reduce the amount of use voluntarily is quite low. We believe that the unit price which depends on the amount of use might change recipients' behavior, which would reduce the LTC expenditure. For analysis, we set up simple model for each system and perform simulations with several parameters. We show that the effect of the system varies considerably depending on the policy parameter values.