Digital Health
Report summary
South Korean digital healthcare market
South Korea offers strong opportunities for UK digital healthcare companies with the government, major hospitals, large conglomerates and a growing number of tech start-ups all investing heavily in the field. The country is grappling with rapidly-increasing medical costs due to its ageing population and an increased rate of chronic disease. Coupled with its highly-developed ICT infrastructure and willingness to embrace new technologies, Korea is an attractive market for UK digital healthcare businesses.
There is a growing awareness in Korea that the UK is a world leader in the field of digital health - in particular, genomics and smart healthcare. British companies with the right go-to-market strategy should find a warm reception among potential Korean customers and partners.
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The Korean digital healthcare market
With a market estimated at around $1.2 billion in 2022 and expected to reach approximately £2.8 billion by 2027, the digital healthcare market in Korea is growing rapidly. With active support from the government, the next several years will see an increase in the commercialisation of smart healthcare products and services in both the domestic marketplace and in consumer goods developed in Korea for international markets.
Despite this flurry of activity, the Korean digital health market lags behind the world’s leading nations due to regulatory barriers around data sharing and telemedicine which have held back investments in the development and application of new technologies.
Opportunity areas for UK companies
Korea's digital healthcare capability gap has created opportunities for international digital health companies to enter the market. Promising areas for UK companies include big data (for example, precision medicine and genomics), health IT (for example, clinical IT systems, patient monitoring accessories and EMR/ EHR), artificial intelligence (AI)-based digital healthcare products and services and telehealthcare. While big data and health IT already boast a relatively large market size (£242 million and £273 million respectively), AI-based medical equipment and telehealthcare represent good opportunities in the future. This is due to a lack of domestic expertise, their inclusion in government development plans and expected upcoming deregulation of the market.
The major Korean conglomerates are investing in digital healthcare research and collaborating internationally.
Samsung Electronics announced that it is looking at digital healthcare as a way of moving beyond its electronics hardware. Its investment will focus on preventable medicine and on developing the health functionality of the group’s existing smart watches and other wearables. SK Telecom also sees the opportunities presented by digital healthcare and has recently announced it will work with local biotechnology firm Macrogen to develop an AI solution for genome analysis to help cancer patients get the right chemotherapy treatment.
Government and digital healthcare
Since President Moon Jae-In came to power in May 2017, his administration has sharpened its focus on digital healthcare by pledging to increase investment and drive deregulation, where appropriate, to spur innovation.
Digital healthcare is one of the four pillars of the Moon administration’s plan for the Fourth Industrial Revolution, with particular emphasis placed on areas such as healthcare related big data, IoT and AI. The new government has identified the count’s strict personal data laws as a key stumbling block for innovation within digital healthcare and announced it will invest up to £678 million to deregulate the local data market - a prerequisite for the digital healthcare industry to flourish.
Market entry checklist
UK businesses looking at the Korean market should consider both business-related and cultural factors before setting out. These might include:
- Do we have a strong differentiator that sets us apart from our competitors in the market?
- Do we have a strong track record in other major markets?
- Are we willing to localise the product for the market and/or for local regulations?
- Are we ready to provide a Proof of Concept (PoC) at little or no cost to the customer?
- How do we provide after-sales support?
- Do we understand the local regulations, particularly in relation to data? Do we need to adjust our business model to adapt?
UK businesses can approach the Korean market through direct sales from the UK by appointing a local channel partner or by setting up an office in Korea. Each has its own benefits and drawbacks and these should be given strong consideration before entering the market. With the right strategy and local support, Korea offers great opportunities for UK digitsal health companies looking to expand overseas.
We seek diverse global business models under cooperation with partners with innovative technologies in the digital healthcare sector.
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