The opposition Grand National Party(GNP) on Tuesday demanded the resignation of the cabinet in connection with the near total drainage of the medical insurance fund.

GNP Spokesman Kwon Chul-hyun said in a statement that the collapse of the fund was a foreseen catastrophe. He said that state affairs should be redressed via the resignation of all cabinet members, including Prime Minister Lee Han-dong.

The spokesman said a new cabinet is needed to bring order to chaotic policies and soothe the people who are in a state of great anxiety.

The GNP strongly called for President Kim to make extraordinary steps to save the "sinking nation," including the creation of a new cabinet.

Recently, the government disclosed that the medical insurance fund is nearly empty. The fund is used to pay medical costs for patients under the national health care system.