Both private and public sectors play a role in healthcare delivery in South Korea. The country overhauled its healthcare industry with the introduction of healthcare insurance and other such reforms after the Asian economic downturn of 1997 in order to cut costs and increase competition. The Government has actively supported and participated in the industry by declaring investor-friendly policies and tax incentives to attract foreign investors. It also encourages health promotion activities and provision of healthcare services to the poor and vulnerable sections of the rural population. This 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. The Government’s decision to reduce the reimbursement of branded drugs by 20.0 percent upon patent expiration will further drive drug development.
The Government is currently focusing on the modernization of healthcare system to expand as well as improve access to healthcare services and is emphasizing greater collaboration with the healthcare industry to provide innovative 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 biggest healthcare projects in the world. The Government is also hoping to promote medical tourism by providing sophisticated healthcare services. 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.
