The report helps businesses gain a unique insight into the socio-economic dynamics, and helps analyze how they affect healthcare systems and their evolution. It can serve as a valuable tool with actionable guidance for sales, marketing, R&D and business managers with industry related interests.
Four chapters cover the numerical and written analysis for the following topics: Economic Outlook (38 Key industry indicators), The Healthcare System (HC system structures), Reforms (restructuring, re-engineering or austerity efforts) and the Healthcare Market (Capital Equipment, Medical Devices, Disposables and Pharmaceuticals).
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- The Republic of Korea, better known as South Korea, has undergone a rapid economic expansion in recent decades, and is recognized for revolutionizing its economy in a single generation.
- Its GDP in 2017 is estimated around €1328 bn, making it the 11th largest in the world, and the 4th largest in Asia.
- In 2017, life expectancy was around 71 years old, and unemployment around 3.8%. It has one of the fastest ageing populations in the world.
- Looking at its growth curve since 2011, it has been following a gradually declining trend, from 3.7% to an expected 2.8% for 2018.
- Despite its lack of major natural resources and some overpopulation problems, South Korea has been able to adapt and fuel its economy through export-oriented strategies.
The Healthcare System:
- South Korea’s healthcare system and provisions are considered effective and have demonstrated high capabilities. Healthcare accessibility is high due to the wide coverage of non-elective care via the National Health Insurance.
- South Korea has a universal national healthcare system (the National Health Insurance, NHI). It is administered by the Ministry of Health and Welfare (MOHW) and executed through the Health Insurance Review and Assessment Service (HIRA) and the National Health Insurance Service (NHIS).
- Considering the nation only spends 4.6% of its GDP on healthcare, the overall positive outcomes are clear evidence that it is well organized and efficiently managed financially in many ways.
- South Korea’s healthcare (HC) expenditures were €58.14 bn from 2016-2017. As a percentage of GDP this expenditure is forecasted to decrease slightly over the next 2 years, though overall expenditure will increase steadily, due to positive GDP growth forecasts.
- 17% of all acute hospitals (and 29% of acute hospital beds) are public, indicating that the vast majority of HC services are contracted and purchased from private providers.
- Medical device market access adjustment (2017)
- Enforcement Decree of the Medical Devices Act (2017)
- Food and Drug Safety reforms (2011)
- Long-term health coverage for the elderly (2008)
- Planned/pending reforms
- South Korea’s medtech market is the third largest in Asia. It is expected to continue growing over the next 5 years with a rate of 5-7%.
- The central National Health Insurance’s procurement body is the monopolistic purchasing agent on behalf of all public hospitals and for patient needs covered under the universal healthcare program.
- The Ministry of Food and Drug Safety (MFDS) regulate manufacturing, importation, advertising and pharmacovigilance of medical devices and pharmaceuticals in South Korea.
- South Korea spends one of the highest shares of its total healthcare cost on pharmaceuticals, around 22%.
- In 2016, the medical device market was estimated at €4.12 bn, and the growth is expected to continue the coming 3 years at a rate of 5-7%.
- Free Trade Agreements (FTA) signed with the European Union (2011) and the USA (2012) led to greater transparency, especially in the pricing and reimbursement of medical devices, and boosted trade between the regions.
- South Korean medtech products -as a brand- are held in high esteem within its region, and there are business opportunities to collaborate with domestic firms in order to expand one’s visibility and market access in Asia.
Includes tables centralizing all relevant data on socio-demographics, macroeconomics and national Healthcare.
National Care Provision data:
Provides an overview of the Healthcare demographics: Nation Care provision data, Intensive Care units, Operating rooms, Emergency Rooms, Hospital services, Healthcare professionals.
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