The South Korean healthcare industry could witness tremendous growth in the next five to ten years, as the Government’s promise to increase its healthcare as well as drug and pharmaceuticals R&D expenditure will bring in new drug development projects to the country.
New Country Industry Forecasts from the Frost & Sullivan Economic Research and Analytics team addressing the South Korean Healthcare Industry reveal that growth opportunities exist in the areas of healthcare services and consulting, medical tourism, clinical trials, biotechnology, healthcare outsourcing, and medical devices and equipment.
The Government has actively supported and participated in the industry by declaring investor-friendly policies and tax incentives to attract foreign companies. It also encourages health promotion activities and the provision of healthcare services to the poor and vulnerable sections of the rural population.
The South Korean Government has ambitious plans to improve the delivery of healthcare services in the country. It intends to upgrade the existing healthcare centers, increase the total number of healthcare facilities (healthcare clinics and diagnostic centers), and train doctors and other medical professionals in rural and urban areas.
The Government is currently focusing on modernizing the healthcare system to expand as well as improve access to healthcare services and is emphasizing greater collaboration with the healthcare industry to innovate drugs. It hopes to make available suitable services for the aging population, more economical medicines, and modern medical equipment in hospitals.
It is revolutionizing the delivery of healthcare services with the help of information technology and communications by implementing E-health and Telemedicine, one of the largest healthcare projects in the world. The Government is also hoping to promote medical tourism by providing sophisticated healthcare services.
The Government’s decision to reduce the reimbursement of branded drugs by 20.0 percent upon patent expiration will further drive drug development. The prospects for the industry remain bright due to new demands originating from the different sections of the society and an increase in lifestyle diseases.
The political establishment plays a critical role in prioritizing the healthcare industry in the development agenda of a country. General economic policies greatly impact this demand-driven industry and industry-specific policies, wherever effectively enforced, provide added impetus.
“Riding on the back of the economic reforms process initiated after the 1997 Asian economic downturn, South Korea has emerged as one of the largest and fastest growing economies in the world,” says Frost & Sullivan Research Analyst Konda Reddy.
The Government is looking to upgrade business practices to international standards, promote human resources and technology development, and improve institutional efficiency. However, the robustness of the economic recovery process largely depends on the pace of corporate sector restructuring, citizens’ ability to cope with reduced job security scenario, and the level of investor confidence in South Korea.
The favorable economic climate in South Korea and an increase in disposable income will ensure sustainable growth as well as greater per capita expenditure on healthcare. The spending on healthcare is likely to escalate considerably because of the rising popularity of the healthcare sector, rapidly aging population, growing health consciousness, and increasing healthcare needs of the people.
The various health and family welfare programs aimed at reducing the maternal mortality ratio (MMR) and infant mortality rate (IMR) and other key healthcare indicators will help achieve sustainable population stabilization. These programs have paid off, as is evident from the continuous increase in life expectancy and decline in the birth rate.
“While the Government continues to give priority to national disease control programs, several bilateral and multilateral donor agencies have stepped in to offer considerable assistance to some of them,” notes Reddy. “The swelling market and an attractive labor force have tremendous potential to attract foreign companies to either outsource or set up their R&D hubs in the country.”
The three-part series addressing the South Korean Healthcare Industry is part of the Frost & Sullivan Healthcare GPS subscription services. The Political and Policy Analysis of the South Korean Healthcare Industry provides a detailed coverage of the political establishment, general economic and industry-specific policies, and their impact on the industry. The Economic Analysis provides an overview of the market size, a discussion of drivers as well as restraints, and an analysis of market structure in the context of the overall South Korean economy. The Social, Infrastructure, and Labor Analysis studies the labor market dynamics, infrastructure conditions, and consumption profile of end users. Analyst interviews and briefings to the press are available.
Frost & Sullivan’s Country Industry Forecast research provides a unique country-specific perspective on various industries. The valuable Country-Industry Linkage includes in-depth analyses and forecasts.
The Frost &Sullivan Economic Research and Analytics team provides research focused on timely and critical sociometric, econometric, demographic, political, and regulatory information for specific countries by industry. It produces research services, economic impact articles, and economic updates that discuss relevant and critical economic trends.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest political, economic, and social analysis of the South Korean Healthcare Industry then send an email to Jasminder Kaur, Corporate Communications, at jkaur[.]frost.com with your full name, company name, title, telephone number, email address, city, state, and country. We will send you the overview by email upon receipt of the above information.
About Frost & Sullivan
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.