Korea’s Strategies for Exporting Healthcare System

2014 Medical Korea

Ki Nam Jin

Dept of Health Administration

Yonsei University

I. Government Policy for Globalizing

Healthcare System

Global Healthcare Market

Korean

Healthcare

Market

Background

1. Korean Healthcare Market

Background

1

• Increasing importance of healthcare industry in the economy (potential for creating more jobs)

2

• Emergence of world-class hospitals

3

• Keen competition in domestic healthcare market

4

• Changing nature of consumer (e.g., aging trend, smart consumers)

Background

2. Global Healthcare Market

- 8% annual growth - $3 trillion by 2015

- Emergence of new target market(e.g., CIS, Arab) - Emergence of big players in global market

(e.g., Singapore Parkway Group, Interhealth Canada)

1) Rapid development of global healthcare market

2) Growing trend of healthcare market opening

(triggered by WTO, DDA, FTA)

Global Healthcare Market

Globalization

of

Healthcare

in Korea

Background

Korean

Healthcare

Market

Development

of

Healthcare

Industry

Globalization of Healthcare

National

Brand

Economic Development

Policy Goal

Inbound

Action

Globalization of Healthcare

Outbound

Action

Policy Actions

II. Current Trends

Overseas expansion of Medical

institution by year

Overseas expansion of Medical

institution by region

Overseas Expansion of Medical Institutions (by year and region)

KHIDI Report(2013)

Overseas Expansion of Medical Institutions (by specialty)

KHIDI Report(2013)

Overseas Expansion of Medical Institutions (by business type)

KHIDI PPT(2013)

III. Ecological System

Medical Institutions

Financial Service Industry

IT

Industry

Medical Device

Industry

Construction

Industry

Key Players

Supporting Institutions Function

Types Market research and information

offering

Research on Policy &

Infrastructure

Overseas Business (Export)

Consulting Service

Project Management

Public Institution

KHIDI

KOTRA

Public/ Private Joint

KMH

Private Institution

KOMEA

KOHEA

Committee (for Exporting

Hospital/Medical Industry)

Function of Supporting Institutions

KHIDI Report(2013)

IV. Strategies for Exporting Healthcare

System

History of overseas market development efforts

Barriers

KHIDI PPT(2013)

Strategy

Policy & Legal

System

G2G Network

Research Information

System

Project Support

Marketing

Policy and Legal System

1

• New law for supporting the export of healthcare system

2

• Public/private joint Task Force Team (control center for supporting globalization of Korean healthcare system)

G2G Network

1

• Overseas branch offices (e.g., KHIDI, KTO, KOTRA)

2

• MOU between nations

3

• Offering training courses to healthcare workers in other nations

4

• Official Development Assistance(ODA) projects (e.g., KOICA, Economic Development Cooperation Fund)

Research

1

• Research on overseas expansion of Korean hospitals/clinics: current trend & strategies

2

• Research on Foreign healthcare market: market characteristics & barriers

3

• Research on export strategies of other nations

4

• Research on policy and strategies in Korea, etc.

Information System

1

• Integrated information portal on foreign healthcare market

2

• Newsletter

3

• Making Ad materials (e.g., video, pamphlet)

Project Support

1

• Developing customized project for target nation

2

• Developing business model & HR

3

• Consulting services

4

• Financial support (for research, consultation, initial cost for overseas expansion)

Marketing

1

• Hosting global conference or event (e.g., FAM tour)

2

• Making “export market development team”

3

• Supporting FAM tour

4

• Website

V. SWOT analysis of Korean Healthcare

System

Strength Weakness

1) Medical outcomes

- Cancer survival rate, Robotic surgery

2) Low cost

3) Infrastructure (e.g., IT system)

4) Systematic support from government

1) Low brand awareness in global healthcare

market

2) Low visibility of Korea doctors

3) Lack of networks with foreign hospitals

4) Language barrier

Opportunity Threat

1) Development of global healthcare market

2) Enhanced national brand (e.g., Hallyu)

1) Emergence of new competitors

- Japan

2) Global economic recession

SWOT analysis

Thank you

Ki Nam Jin

Dept of Health Administration

Yonsei University

Korea