Outline of the health care industry

1. 1. Concept

   The health care industry is an industry providing products and services related to life phenomena including people´s health and includes production and supply of pharmaceuticals, medical equipment, and health care services.

2. 2. Characteristics of the health care industry
   • As health care itself has a characteristic of public goods, there are regulations to secure safety and accessibility of health care goods and services.
   • It is a knowledge-intensive industry requiring long-term investment and has a huge effect of economies of scale.
     - Late comers to the industry have difficulties in entering the global market.
   • The health care industry will drive economic growth as it produces high added value and employment opportunities.

Policy direction for the health care industry

1. 1. Utilizing core elements of the health care industry

   We will nurture the health care industry into a new growth engine for the Korean economy and help the public´s convenient access to health care by creating basic conditions where core elements of the health care industry can be utilized effectively.

2. 2. Laying the foundation for the development of the health care industry
   • State-of-the-art health care complex
     • - The state-of-the-art health care complex will be created where businesses, hospitals, universities and laboratories cluster together to promote the development of new medicines (including incrementally modified drugs) and advanced medical equipment.
     • - By 2012, 1.2 trillion won (30 million won from government sources) will be invested to establish coreㆍsupportㆍconvenient facilities and attract private companies on the 300,000 pyong complex.

       Core facilities	New MedicineㆍAdvanced Medical Equipment Development Support Center, and State-of-the-art Clinical Trial Center
       Support facilities	Laboratory Animal Research Center, Bio Resource Center, Clinical Trial New Medicine Production Center
       Convenient facilities	Communications Center, One Stop Administration Center, and residental facilities such as apartments

3. 3. Enhanced R&D capabilities by fostering research hospitals
   • Skilled labor force and technologies of hospitals will be put into better use by increasing the number of research hospitals (developing cell treatment and cancer treatment) by 15 by 2012.
   • Fifteen high-tech Local Clinical Trial Centers will be established by 2009 to strengthen connection between stages, from basic research to clinical study and to commercialization.
4. 4. Establishing a performance-based health care R&D system
   • R&D investment will be made in a more efficient manner by developing government-wide mid-to-long-term plans and coordinating between different Ministries.
   • To maximize the return of R&D investment, the goal of overcoming diseases will be brought to the fore and technology research and product development will be strategically organized around the goal.
   • Researchers for basic and clinical study will be fostered while infrastructure for sharing and commercializing health care resources will be established.

Improving policies for the development of the health care industry

1. 1. The basis for nurturing the health care industry will be laid by improving relevant health care policies.
   • Efforts are under way to introduce Health Service Bonds to facilitate financing of medical organizations operating non-profit corporations.
   • We are moving to revise the Medical Service Act to establish merging procedures of medical organizations, expand the scope of incidental business, and introduce a special function hospital system.
2. 2. Attracting overseas patients
   • Polices and infrastructure to attract overseas patients will be bolstered to improve service account balance, sharpen competitiveness of medical services, and create employment opportunities in Korea.
   • It is necessary to change the status of Korea Council for Medicine Overseas Promotion, an entity jointly participated by the public and private sectors, into a corporation for effective public relations, networking and human resource development.
3. 3. Legislating Framework Act on Health Care Industry Development (tentatively titled)
   • Comprehensive and systematic approach is needed instead of the current discrete support for the health care industry.
   • To supplement the existing Health and Medical Service Technology Promotion Act which deals with technology development, a broader law tentatively titled Framework Act on Health Care Industry Development will be enacted to set out rules on technology transfer, production, distribution, and export, covering every level of the value chain in the health care industry.
4. 4. Health care information project
   • The Korean government will enhance safety and efficiency of health care services and promote public health through health care information projects and nurture e-Health into a driving force industry.
   • Efforts are under way to legislate the Act on Health Information Protection, Management, and Operation to establish a health information protection system and build the basis for the health care information system.
     The Korean government will establish the reliable consumer health information system and link the system to a life-long health records service of e-Health to provide the public with health information based on individual needs.
5. 5. U-Healthcare
   • U-Healthcare will enable more efficient delivery of consumer-oriented healthcare services by breaking down restraints on time and space of service delivery.
   • U-Health related policies have been developed and implemented in a discrete and uncoordinated way, hindering the development of health care services.
     • - It is necessary for the Ministry responsible for health care services to take the initiative to promote U-Healthcare services.