April 28, 2011

KyoungYong JEE, Ph.DVice President at ETRI

Professor at USTkyjee@etri.re.kr

+82-42-860-5666 / +82-42-10-9744-5003

KANZ, 2011, Hobart, Australia

Mailing

SCM

e-Automation

PABX

e-MarketERP

MESIBS

EDMS

Group D

GW

HRM

ASPDWEMR

KMSEIP

WCMSEDI

ERMe-IPS

e-Faxe-Searche-CTI

e-CommunityOCS

CRM

Health Information

System

CONTENTS

PART I Why u-Health in KoreaPART II Killer Application: Patient MonitoringPART III U-Healthcare Pilot Project Trial in KoreaPART IV Case Study of Tele-healthPART V Case Study of Smart HealthPART VI Market Evaluation

PART I: WHY U-HEALTH IN KOREA

PART I Why u-Health in KoreaPART II Killer Application: Patient MonitoringPART III U-Healthcare Pilot Project Trial in KoreaPART IV Case Study of Tele-healthPART V Case Study of Smart HealthPART VI Market Evaluation

Mobile Broadband8M

1M

128K

56K

28.8K

9.6K

1990 1997 1998 1999 2005 2010~

Video-Phone

ChattingE-mail

Text -based E-mailFax

Remote - educationNetwork Game

ADSL, MPEG 2

Age of dial-up Age of TCP/IP (True Internet)Bandwidth(unit: bps)

Dial -up service

Cable ModemMPEG 4

MP3

Internet Cafe

FTP

Web Surfing

ISDNJPEG, GIF

M- GIF

Real time streaming serviceFixed Broadband

(NOW)Mobile Internet

WiBroDMB HSDPA

Fixed InternetiPhone

4

Korea is one of the first countries to consider ICT sector as an economic stimulus

For every 10% increase in Internet connectivity, the country’s GDP increase by 1.3% (World Bank Report)

1% increase in broadband penetration correspond to US$2,000 per capita higher GDP(CTIA Report)

Each percentage point of broadband adoption adds roughly 293,000 private sector jobs a year to the US economy (Brookings Institution)

5

Green by IT Green by ICT : Announced “Low Charcoal Society” with the use of ICT

technology To increase smart work share from 2.4% (2009) to 20%(2013) and finally

30%(2020) in public administration service To promote the use of net book computers and e-paper in work place To provide digital text book, electronic board and IPTV in school to be

environment-friendly Green Traffic by ITS

To establish ITS, Intelligent Environment Surveillance System and Disaster Alerting System by 2013 with context of green of SOC

U-Healthcare by IPTV To prepare patient monitoring system based on IPTV by 2013 aiming at

decreasing 15% of hospital visits Benefits: chronic patients could save transportation costs and energy with

the use of patient monitoring system

Tele-medicine

ERP

CRM

EMR

O/L Reservation

PACS

OCS

5.35

16.36

20.09

30.9

76.36

87.2

98.1

Penetration of Medical Information System (Korea)

Source: Network Times(2006)

OCS : 92.5% (3288)

PACS(Radiology) : 79.5% (2826)

EMR : 39.5% (1404)* Source: Univ. of Minnesota, 2010

8Korea is heading for super-aged Society

9

<Table > National Pension Take-up Rate Trends in Select Countries

Country 1960 2000 국가 1960 2000Australia* 52 68 Japan 32 127

Austria 59 87 Netherlands 80 107Belgium - 101 Norway 88 102

Canada 99 97 New Zealand 71 95

Denmark 82 101 Sweden 100 100Finland 97 100 Switzerland 100 100France - 100 UK 79 104

Germany - 100 US 72 93Iceland 87 96 Italy - 100

* Pension take-up rate: The ratio of pensioners to post-retirement age population.

•Although there is a basic pension program in Australia, about 30% of the elderly are not eligible to receive benefits from this program, based on their income or assets.

Source: Scurggs (2007), p.153.

Annual medical expense per capita by ages (unit : US$)

Source : National Health Insurance Corp. of Korea 2010 10

Medical expense from the elderly over 65 : US$ 5.6B : 24.4% of total medical expense in 2005 US$ 12.7B : 31.6% of total medical expense in 2010

The ratio of medical expense from the elderly over 65 (’05~’10) ‘05 : 24.4% -> ’10 : 31.6%

The frequency of hospital visit of the elderly over 65 ’05 : 53.73 days -> ’10 : 67.03 days Cf> average frequency of Korean’s hospital visit(2010) : 27.57 days

Principal reason for hospital visit : senile cataract , cerebral infarction, pneumonia, highblood pressure, arthritis

senile cataract: 백내장

cerebral infarction: 뇌경색

Pneumonia: 폐렴

Arthritis: 관절염

2006 2007 2008 2009 Average increase(%)

High blood pressure 4,270 4,601 4,946 5,232(10.5) 7.5

Diabetes 1,764 1,879 1,951 2,060(4.1) 5.6

Arthritis 4,485 4,880 5,137 5,295(10.7) 6.0

(unit: 1,000 person)

Source: National Health Insurance Corps, 『2006~2010 Data Book』

11Arthritis: 관절염

Improve quality of life Improving patient outcomes

by earlier diagnosis

• Reduce cost– Enabling earlier diagnosis

and thus lowering cost of subsequent treatments

0

40k

80k

120k

160k

200k

Lung Colorectum Prostate Breast Ovary

New casesRelated deaths

Potential lives saved by early diagnosis

0%10%20%30%40%50%60%70%80%

No cancer

Stage 0

Stage I

Stage II

Stage III

Stage IV

020406080100120140160

% a

live

15 y

ears

afte

r dia

gnos

is

Treatment cost ($ 000)

survival

Treatmentcost

Breast cancer (USA)

Source: www.r2tech.com, based on data from American Cancer Society

Cancer in USA - 1999

Prostate:전립선, Ovary: 난소12

PART II: KILLER APPLILICATION:PATIENT MONITORING

PART I Why u-Health in KoreaPART II Killer Application: Patient MonitoringPART III U-Healthcare Pilot Project Trial in KoreaPART IV Case Study of Tele-healthPART V Case Study of Smart HealthPART VI Market Evaluation

3) Cost/Benefit- Enhancement of Satisfaction

Quality of Life (increase healthy life expectancy)

1) Timely Care & Reduction of lifetime Healthcare costs

2) Accessibility- Convenience

What? :Providing convenient, safe and affordablehealthcare to all Korean, whiling keeping the ratio of total healthcare costs to GDP, which tends to increase in aging, low-birth societies, under control, so as to prevent diseases and help them live a healthy life.

How? :Patient Monitoring Technology

Maximize !

Two main factors for rising healthcare costs

Increase in the incidence of chronic diseases> Timely care

> Patient Monitoring !

Increase in elderly diseases > Expanding home care and nursing care > Patient Monitoring !

Strategy for Increasing Healthy Life Expectancy to 80 Years (2030)

substitute to

Definition Home nursing care is the technology that can transform this low-

tech business into a efficient, timely extension of primary care treatment facilities is available

Current More than 9M people, in the US, received home healthcare

services provided by more than 12,000 medical professionals Benefit

Telemedicine and applications over BB connections to the home can reduce or eliminate a substantial amount of institutional care and treatment for the disabled

The resulting benefits include reduced ER visits, lower hospital re-admissions, and improved quality of life

15

Nursing Home Telemedicine applications interconnect nursing homes with

primary care facilities And it would reduce the risk of transport injury, lower costs, and

provide real-time monitoring of the most severe cases outside of the hospital Most nursing home patients require daily vital sign collection and dialogue with

a skilled staff, so the physician and nursing shortages present a serious health problem

Located near hospitals in order to allow for optimal delivery of healthcare

Another opportunity for technology solutions to reduce costs and improve care

Studies shows a high-degree of patient and physician satisfaction for routine checkups and follow ups at the nursing homes

16

PART III: U-HEALTHCARE PILOTPROJECT TRIAL IN KOREA

PART I Why u-Health in KoreaPART II Killer Application: Patient MonitoringPART III U-Healthcare Pilot Project Trial in KoreaPART IV Case Study of Tele-healthPART V Case Study of Smart HealthPART VI Market Evaluation

Hospital Description Trial

Korea University Hospital (u-Health Care Division)

The first hospital to launch a dedicated u-health service division Provided u-healthcare services to 6,000 people with limited access to

medical care, jointly with the Public Health Office of Seongbuk-gu Ward of Seoul between Apr. 2006 and Aug. 2008.

Mar. 2004

Gil Hospital (u-Health Care Center)

RFID-based USN system e-Medical card system launched in Jan. 2006 Cooperation agreement with KT, ETRI and Motorola on u-health care

Jul. 2005

SNU Hospital in Bundang (u-Health Taskforce Team)

Development of RFID-linked, real-time resource management system Online viewing of consultation records enabled u-Healthcare services for the lone elderly HER service & development of an information sharing system

Jul. 2005

Catholic Medical Center(u-Health Division)

Linking u-healthcare-related accomplishments under the Catholic Medical Center’s medical informatization project (CMCnU) and the accomplishments of the u-Healthcare division

15 R&D tasks carried out in 2007 A medical informatization project conducted b/w Jul. 2006 and Dec. 2009

Sep. 2007

Severance Hospital(u-Severance)

Smart card-aided parking system Consultation location & information system Prescription delivery system. Patient safety system using electronic tags IT-aid upgrade of ward service Patient information supplied through web servers and terminals Viewing of patients’ medical information

Nov. 2005

u-Health Care Services and Systems at Large Medical Institutions

19

Type Description Year Target area (Service provider)

Tele-medicine

Jointly conducted by three university hospitals and three public health centers

Project interrupted due to technical problems including slow connection speed.

1990SNU Hospital ↔

Yeoncheon/ Hwacheon/ Uljin Health Center

Tele-medicine

Telemedicine pilot project for dementia patients Dementia consultations, rehabilitation training and dementia-

specialized manpower development conducted using a T1-speed dedicated line.

1996 SNU Hospital Dementia Center

Tele-medicine

Teleconsultation system for rural communitiesVideo teleconsultation system, design and development of a

teleconsultation database Trial operation of a video teleconsultation system.

2004Chonam National

University Hospital↔Gokseong-gun,

Jeonnam

Tele-medicine

Teleconsultation system for armed forces Teleconsultation services by physicians in remote locationsMeasurement of b/p, body temperature, pulse and blood

glucose and electrocardiogram, etc.

2005Armed Forces Medical

Command ↔ 6th Division Medical Unit

Tele-medicine

u-Health care system for residents of remote areas Teleconsultation services for island and other remote areas.Measurement of b/p, pulse and blood glucose, and

electrocardiogram, etc.

2006Ministry of Public

Administration and Security↔ Sinan-gun,

Jeonnam

Dementia: 치매

20

* u-Health care pilot projects, touching broad-ranging areas of health including health Mgt, visiting nurse service and the health of the elderly and children and community health, underway since 2006.

Type Description Year Target area

Telemedicine(including health Mgt and visiting nurse services)

Telemedicine service primarily provided by public health centers and nursing homes

Including remote islands such as Ulleungdo and Dokdo2006 Busan/Daegu

Telemedicine service provided through hospital ships and vehicles

2007

Chungnam

Telemedicine service for workers at industrial complex Gyeonggi

process improvement for u-Visiting nurse service Busan

Mgt of the safety of lone elderly

Managing the safety of the elderly living alone by monitoring their activities using sensors. 2007 Masan

Emergency Emergency medical service provided using telemedicine equipment. 2007 Busan

Children’s health Managing the health of children to prevent ADHD. 2007 Gyeonggi

Community health

Community health service for managing the health and fitness of local residents. 2007 Masan

Lifestyle Mgt service to ensure the health of community members by managing their diet and exercise. 2007 Chungnam

Tele-health monitoring

USN-based telemonitoring system Public health center-provided telemedicine, u-visiting nurse service,

home care service for cardiac patients, u-fitness/strengthening service for frail elderly persons

Jul. 2008~

Dec. 2009

GangneungYeongyang-

gunBoryeong/Se

osan)

Smart-care u-Health Service using Smartphones and IPTV Oct.2010 Nationwide

ADHD: 주의력 결핍과잉활동장애

A sample scenario January 2011, a teleconsultation room in the Police Hospital in Garakbon-dong, Seoul: The image

of Mr. A, a cost guard officer stationed in the remote island of Dokdo, who had undergone orthopedic surgery procedure a month before in this hospital, is displayed on the computer screen. Mr. A is having a videoconference with his surgeon as a part of the post-surgery follow-up care after he was discharged from the hospital, with the latter now examining the site of operation through the computer screen.

After the consultation of Mr. A, Mr. B, who is also a cost guard officer made a videoconference call to a doctor at a public health center in the nearby island of Ulleung for his cold symptoms and received a prescription. Mr. B did not need to carry his prescription to a pharmacy. The prescribed medicine was, instead, delivered to him by medical delivery service.

Pros: Elimination of geographic pockets with no access to medical care About 4.5M Koreans have limited access to medical care with 860T

residing in islands and remote rural areas; 630T residing in prisons and other institutional settings in which access to medical service is limited; 980T being disabled or mobility-impaired or challenged; 2M Koreans receive in-home care service.

Cons: High costs “Demand for u-healthcare is likely to be modest, especially

compared to the initial investment requirement. Except in special circumstances, people in large cities where there are medical facilities in most neighborhoods will have few incentives to turn to teleconsultations”

PART IV: CASE STUDY OFTELE-HEALTH

PART I Why u-Health in KoreaPART II Killer Application: Patient MonitoringPART III U-Healthcare Pilot Project Trial in KoreaPART IV Case Study of Tele-healthPART V Case Study of Smart HealthPART VI Market Evaluation

23

u-Healhthcare Center

•Processing of accumulated bio-data

•Analysis of measurement results

•u-Health CDSS

e-Health System

Teleconsultation room

Tele-health care

service Patient Movable remote

bioinformation measuring

device

Remote video

consultation

Pharmacy

Pharmacist

Medical institution

Doctor

Website

Website

MobilePC

Visiting nurseNew public health

information system

Patient (home)

u-Visiting nurse

service Movable remote

bioinformation measuring

device

Movable measure

ment device

Visiting nurse

Movable remote bioinformation

measuring device

Authentication key for prescription

issue

Delivery of prescribed

medications

Verification and output of the prescription

Telemonitoring of bioinformation

Issue of medical instructions and

prescriptions

Transmission of bioinformation

Remote consultation/ diagnostic/

management

Transmission of bioinformation

Remote consultation/ diagnostic/ management

Off-Line

Auto WCDMA/HSDPA

ADSL/FTTx

<Figure> Concept Map of USN-based Telemonitoring

Integrated Public Health Information Center

Project location• Service piloted by the Ministry of Health and Welfare since Jan.

2008• in 3 areas with limited access to medical care, including

Gangneung of Gangwon-do, Yeongyang of Gyeongbuk and Boryeong of Chungnam.

Results• Tele-consultations conducted 1,835 times on 1,637 patients, in cumulative

total, for 87 suspected diseases in 9 departments including the cardiology dept. as of end of June 2008.

Patient Satisfaction• 92.5% answered ‘Satisfied’ and 92.8% answered ‘Will continue using

the service.’ • The possibility to receive consultation at any time from anywhere and

the quality of consultation provided appear to be two main satisfaction factors.

• Most respondents had high blood pressure (80%) or were diabetic(11%) .

• Time spent to receive consultation, including travel time and wait in the doctor’s office shortened from 445 minutes to 76 minutes.

Considerable cost savings • “The average cost of a hospital visit by an outpatient amounts to

about US$ 2.3 in transportation costs and US$17.3 in consultation fee. • Given that the total annual # of prescriptions issued being 700M, the

total savings would amount to US$ 13B” says a project member.

26

Project Initiator• National Information Society Agency (NIA), Ministry of Health and Welfare(MHW)

Background• To meet the rising demand for public health care service• Public health care facilities account for only 15% of all medical facilities in Korea,

85% of them being private facilities, pointing to the need to expand public medical infrastructure.

Goals • To facilitate access to public medical service for residents of islands and remote

mountainous areas • Ensure the health of low-income populations unable to afford costly medical

service• Eliminate social and geographic pockets with limited access to medical care and

provide equal access to medical care for all in the society

Target Areas • Gangwon (Gangneung), Chungnam (Boryeong and Seosan) and Gyeongbuk

(Yeongyang-gun)

27

Results • Implemented to provide better services to communities in remote islands and

mountainous areas with limited access to medical care

• In 2008, teleconsultation, e-prescription and customized u-visiting nurse services, and home care services for cardiac patients provided through public health clinics, in collaboration with public health institutions, local general hospitals and pharmacies.

• In 2009, the u-health model was further improved with more local residents using u-health services.

• From this pilot project, we had better understanding of practical u-health model indispensable for improving health care in the areas with limited access to medical services

Future Plans• Use of the project experience to assist legal and regulatory improvements related

to medical care, including the amendment of the Medical Service Act.

PART V: CASE STUDY OFSMART CARE

PART I Why u-Health in KoreaPART II Killer Application: Patient MonitoringPART III U-Healthcare Pilot Project Trial in KoreaPART IV Case Study of Tele-healthPART V Case Study of Smart HealthPART VI Market Evaluation

Korea has been showing successful results in terms of penetration &use of fixed and mobile networks

And leads IT innovation initiatives as the test-bed for innovation- Rate of broadband use: 77.8% (2010)- Rate of broadband use of preschoolers (age 3 to 5): 63.0% (2010)- Rate of mobile internet use: 59.3% (2010)

29Source: Korea Internet and Security Agency(2010)

Mobile internet use in KoreaBroadband use in Korea

59.4%65.5% 70.2% 72.8% 74.1% 75.5% 76.5% 77.2% 77.8%

2002 2003 2004 2005 2006 2007 2008 2009 2010

32.3% 36.1%40.2% 42.8% 45.1% 47.7% 52.5% 54.9% 59.3%

2002 2003 2004 2005 2006 2007 2008 2009 2010

The smart media big bang set off in Korea in 2010 Smartphone users: jumped 15-fold in 2010 from 2009. Wireless content: Wireless traffic and mobile apps increased 5-

fold and 4.4-fold in 2010 from 2009. Networks: Evolution from WiBro and 3G to LTE-Advanced(4G)

Wireless ContentsSmart Devices

316TB(Oct. 20009)

1,569TB(Oct. 2010)5-fold increase

Wireless traffic

4.2 billion(2009)

18.6 billion(2010E)

4.4-fold increase

Mobile apps

Smartphone users

470K(2009)7M(2010)

15-fold increase

Tablet PC users

(2010) (2011E)2M

(2012E-)

10-fold increase

200K 30Source: Korea Communications Commission(2010)

10M(April 23, 2011)

Mobile Phone Users in the Elderly

31

Total Age 10~49 Age 50~59 Over 60

Total 83.0 93.0 92.0 68.5

Male 85.3 92.8 95.9 77.8

Female 80.7 93.1 88.0 59.1

Divide 4.6 0.3 7.9 18.7

Unit: %

32

Target Population and Period 12,000 patient (the world’s largest size) for a 3-year period

Project Initiator MKE(The Ministry of Knowledge Economy) with SKT Consortium and LG

Electronics Consortium as the two main project managers: SKT Consortium :

Having SKT, Samsung Electronics and Insung Information as its members,the consortium provides u-health services to 8,000 patients with conditions such as diabetes, high blood pressure or chronic pulmonary disease, and cancer survivors, through 7 large hospitals (Gangbuk Samsung Hospital and the National Cancer Center, etc.) and over 130 clinics and care facilities.

LG Electronics Consortium : This consortium made up of LG Electronics, LGU+ and SH

Pharmaceuticals provides u-health services to 4,000 patients with conditions such as high blood pressure, diabetes and metabolic syndrome through 4 large hospitals (Kyungpook National University Hospital, etc.) and more than 38 clinics.

33

Project Summary Implementing a monitoring system without consultation by doctors in

which patients check their own health status using network connected devices and the resulting health data are transmitted to medical facilities. Personal portable devices such as the cell phone (smartphone), IPTV

and portable health monitoring devices linked to the system.

Expected Benefits and Impact The project is expected to usher in the era of u-health care in which

various communications devices, in addition to medical devices proper, will be used to monitor health. The project is also expected to contribute to creating an early

environment for providing customized medical care and health mgt services, adapted for different national, regional and natural environments and the health status of individual patients.

PART VI: MARKET EVALUATION

PART I Why u-Health in KoreaPART II Killer Application: Patient MonitoringPART III U-Healthcare Pilot Project Trial in KoreaPART IV Case Study of Tele-healthPART V Case Study of Smart HealthPART VI Market Evaluation

Technology System Concept Map

UroReadPersonal Uroanalysis Reading

Enables easy at-home urine tests for elderly persons or chronic patients to detect signs of endocrinal or kidney-related disorders.

The world’s smallest portable urine analyzer of the size of a cigarette pack, made using LED and optical fiber waveguide.

BioShirtsBiometric Data Detecting

Monitoring of bioinformation during exercise and daily activities.

Monitoring of biometric data including electrocardiogram, tri-axis acceleration, temperature and respiratory signals.

Size: 50 X 34 X 14 (mm)Weight: 19.6g

BioPatchBiometric Data Detecting

Patches that take electrocardiograms and measure cardiac acceleration signals.

Using Bluetooth LAN connection.Size: 45 X 28 X 10 (mm)Weight: 19.5g

Emergency phone A special mobile phone for the elderly with the ability to

automatically detect emergency situations such as falls and request assistance.

Fall detection sensor (carried on the waist belt) + location tracking.

PROMESPROactive Medication System

A network-based service managing elderly persons’ medicine schedule and medicine administration information.

U-Health Platform

35

Development and implementation of a u-health test-bed platform.

Support for a wide variety of healthcare services for managing health and fitness.

IEEE 11073 (ISO TC215) PHD-based device data. Data collected can be converted into a HL7 CDA document.

* Other technologies include computer-aided diagnostic technology (detection of pulmonary nodules, measurement of bone age), software-based bone density meter, daily life support and life coaching system for the elderly, calorie tracker, smart shoes, home health care gateway.

36

Industrial Trends Market Size (estimated)

Principal Companies Samsung Electronics: A B2B strategy distributing

medical devices for hospitals and centered on transactions between pharmaceuticals companies.

- Acquisition of Medison, an ultrasound monitor maker, in Dec. 2010

- Dr. M, an application for smart pads, under development jointly with Bit Computer.

- Clinical trial plan for Roche’s biosimilar Mabthera submitted for approval.

LG Electronics: Focus on consumer u-health products:

- Touch Dr., a family physician service (commercialized in Dec. 2008).

- IPTV-based telemedicine and medical advice service.- Establishment of a consortium to operate health care

centers (2011). BIT Computer: the company most active in

developing u-health-related applications and systems:- Teleconsultation system ‘Dreamcare+’ - Emergency monitoring system ‘Dreamcare M’- Medical information system for small and medium-

size hospitals and care facilities ‘bitnixHIB.’- IPTV-based ‘Dreamcare TV’

Needed Capabilities from companies participating in u-health system and service development:

The industry, although it has a strong market potential, is still at its early stage in terms of infrastructure and technology.

Cooperative research between the industry and academia on algorithms, signal processing and hardware development is urgently needed.

Positive future market outlook: The # of companies engaged in u-healthcare service, merely 3 or 4 years

ago, stood at over 100 as of March 2011. Amid the accelerating convergence between IT and traditional industries, the

integration of IT in the healthcare field is steadily increasing. IT spending in the Korean health care sector steadily on the rise: The 15.1% rate of growth in annual average is estimated to even surpass the rate of

growth in the global market. The Korean u-health market is expected to reach US$ 2.8B, in 2014, with the u-

wellness market, providing personal health mgt services, representing two-thirds of the overall market.

Engine for future growth: Mobile healthcare Various smartphone-based apps set to be released in the near future

(ex. ‘Family Health Book,’ a health mgt app currently under development by SKT and Korea Medicare (a medical portal), is scheduled for release in April 2011).

\Market size Production inducement Employment inducement

2010 2014 2010 2014 2010 2014

Overall 1.55 2.82 2.55 4.64 22,000 39,000

u-Medical 0.27 0.55 0.45 0.91 4,200 7,300

u-Home nursing 0.36 0.45 0.55 0.73 4,300 6,300

u-Wellness 0.91 1.81 1.55 3.00 13,500 25,400* Source: Korea Health Industry Development Institute (2010)

< The Size of the Korean U-health Market and Estimated Economic Effects

Unit: US$ B, jobs

Amended Mar.30, 2002

•Article 34 (Remote Medical Treatment) ① Medical persons (limited only tomedical doctors, dentists and oriental medical doctors engaged in medical service)may, notwithstanding Article 33 (1), give remote medical treatment (hereinafterreferred to as “remote medical treatment”) to furnish medical knowledge ortechnology to a medical person in a remote area by using information andcommunication technology, such as computers or visual communicationsystems.

Legislativeannouncementon Jul. 29, 2009

Article 34 (Remote Medical Treatment) ① Medical persons (limited only to medicaldoctors, dentists and oriental medical doctors engaged in medical service; hereinafter“ medical doctors in remote locations”) may perform medical activities includingconsultation and issuance of prescriptions on patients located in places other than themedical institution for which they work, using information and communications technologysuch as the computer and videoconferencing (hereinafter “telemedicine”).

② Only follow-up patients deemed to run no medical risk by a medical doctor in a remotelocation may receive telemedicine services pursuant to Paragraph 1 above, if they meetat least one of the following descriptions in items below, whose further details aredetermined by the Presidential Decree:

1. Patients residing in places, located far away from a medical institution, such asislands and remote rural areas;

2. Patients having limited access to medical care such as those residing in acorrectional facility or ship crew members or passengers;

3.Mobility-impaired patients such as disabled or elderly patients having difficultyvisiting medical facilities; or

4.Patients in need of continuous monitoring and care, even outside an institutionalmedical care setting.

Provisions related totelemedicine added forthe first time.

Telemedicine includedas a legal form ofmedical practice.

Allowing patientconsultation by medicalprofessionals, as part oftelemedicine, to improveaccess to medicalservice and foster thegrowth of the health careindustry.

Authorization of doctor-to-patient telemedicineand the creation of legalbasis for the receipt oftelemedicineprescriptions by thirdparties on behalf ofpatients.

Broadening access tomedical service forpopulations in remoteareas and personsotherwise having limitedaccess to medical careand promoting thegrowth of the health careservice industry.

Infrequent hospital

visit

Frequent hospital

visit