South Korea has an extensive and well developed ICT infrastructure emphasizing innovation in next generation technology. It is estimated that the health IT market in South Korea will be $5.6 billion by 2020. The 4G/LTE service and broadband internet cover the entire population and there are plans to upgrade services to 5G in preparation for the 2018 Olympics.
The country has an aging population which in coming years will account for an increasing share of the country’s demographics over time. To increase the need for health IT, the country has a heavily urbanized population and well established ICT infrastructure. R&D expenditure relative to GDP is among the highest in the world.
The Korean government has regulations in place on health, ICT, data privacy, security, and storage. However, the ability to provide mobile health and telehealth services is sharply restricted at the present time. This is because most of the activity appears to be concentrated in areas related to administrative simplification, claims adjustment, adjudication, and EHRs, not in mobile health and telehealth.
Today, medical practice laws force patients to see doctors in person, effectively stopping the use of telehealth products and services. However, it is expected that existing laws will be reviewed in order to further expand the presence of telehealth in Korea.
At the same time, policymakers will need to deal with opposition from some medical professionals and organizations. It is recommended that U.S companies consider partnering with local firms or have a long-term marketing plan in place to effectively compete in the South Korean health IT market.
Other factors that look promising is that the ICT infrastructure is particularly strong since public and private hospital systems have installed a wide spectrum of electronic systems, including EMRs. However, interconnected electronic systems are not widespread right now so it is anticipated that South Korea will be a ready market for many health IT solutions and systems in the near future.
Go to http://trade.gov/topmarkiets/pdf/Health_IT_South_Korea.pdf to view the report on South Korea. For other country reports, go to www.trade.gov/topmarkets.