The Medical Device Market: South Korea

Published : April 2013
No. of Pages : 94

Price:

South Korea ranks as one of the world’s leading economies, with a population approaching 50 million and overall GDP listed among the top 15 in the world. As a result, much of the population expects a high level of medical care.

South Korea has the highest healthcare expenditure of all the ‘Asian Tigers’, with an estimated 59% funded by the public sector. Almost every citizen is covered by the country’s public health insurance system. The government has been forced to implement cost-cutting measures in recent years, owing to a large deficit faced by the healthcare system. Healthcare costs continue to rise, with the country’s rapidly aging population adding upward pressure to total spending. In the first half of 2009 for example, senior citizens accounted for 31.7% of costs covered by the National Health Insurance Corporation (NHIC).

South Korea is well provided for in terms of hospital facilities which are primarily operated by the private sector. There has been a rapid expansion in the number of beds over the past decade and overall provision in hospitals and medical clinics now exceeds 9.0 beds per thousand population, including 5.2 acute hospital beds per thousand population. In recent years, attention has turned to the provision of long term care beds for the elderly and chronically sick to free up space in general hospitals.

In contrast to the abundance of hospital beds, the number of doctors is on the low side for a developed country with around 2.2 physicians per thousand population, although this is above average for the Asia-Pacific region. Moreover, doctors tend to be concentrated in the large metropolitan cities, resulting in a shortage in rural areas.

From a regulatory and legal point of view, the market is generally regarded as ‘difficult’. Government policies are often not transparent, and there is a large degree of favouritism towards local manufacturers. It remains to be seen, but the situation should improve as a result of the Free Trade Agreements signed with the European Union and the USA, which call for more transparency especially in the pricing & reimbursement of medical devices.

South Korea has signed Free Trade Agreements with the European Union and the USA. The EU-South Korea FTA came into effect in July 2011, whilst the US-Korea FTA took effect in March 2012. The FTAs will facilitate increased trade with the easing of tariff and non-tariff barriers. Virtually all tariffs on industrial products are due to be eliminated within three years.

South Korea has a large number of domestic producers, many of which are part of much larger conglomerate companies. Numbers of domestic manufacturers have more than doubled in recent years. Overall, however, the local manufacturing sector is fragmented. One particular area of strength is the electromedical sector.

Imports reached US$2,828.2 million in 2011, a rise of 12.6% over the previous year. All categories achieved double digit growth during the period except for diagnostic imaging (3.7%), the second largest category at US$803.3 million, and orthopaedics (9.8%), valued at US$195.2 million. The top performing category was consumables, which rose by 22.2% to US$437.2 million. Imports have faltered during 2012 with growth of less than 1.0% during the first eleven months of the year.

Table Of Contents

Executive Summary 1

Key Background Data 3
Geographic 3
Political 3
Economic 3
Healthcare System 4
Organisation 4
Healthcare Delivery 4
Private Sector 4
First Foreign Owned Hospital to Open in 2013 5
Medical Tourism Marketing Legalised 5
Jeju Medical Tourism Project 5
Healthcare Funding 5
Health Expenditure 6

Market Developments 8
New President to Focus on Welfare Issues 8
Health Insurance Spending to Rise in 2013 8
Import Growth Recovers during Second Half of 2012 9
Strong Export Performance Continues throughout 2012 9
Medical Device Output Increases 13.6% in 2011 10
Medical Equipment Show Reflects Gangwon’s Status as High Tech Manufacturing Hub 11
Varian Medical Systems Establishes Subsidiary in South Korea 12
US Manufacturers Seeking to Leverage Competitive Advantages of New FTA in Booming South Korean Medical Market 12
Chinese Property Group to Invest US$885 million in Jeju Medical Tourism Project 12

Medical Market Analysis 14
Overview 14
The Market in 2012 15
Past Performance 2007-11 16
Future Performance 2012-17 17
The South Korean Market for Consumables 24
The South Korean Market for Diagnostic Imaging 27
The South Korean Market for Dental Products 30
The South Korean Market for Orthopaedic & Prosthetic Products 33
The South Korean Market for Patient Aids 35
The South Korean Market for Other Medical Devices 37

Annual Imports 40
Consumables 41
Diagnostic Imaging 41
Dental Products 41
Orthopaedic & Prosthetic Products 41
Patient Aids 41

Monthly Imports 55

Annual Exports 56
Consumables 57
Diagnostic Imaging 57
Dental Products 57
Orthopaedic Products 57
Patient Aids 57

Monthly Exports 73

Domestic Production 74
Trade Associations 78
Korea Medical Devices Industrial Cooperative Association 78

Domestic Manufacturing 79
National Manufacturers 79
Boin Medica Co. Ltd 79
Choongwae Medical 79
CU Medical 79
Hanshin Medical 79
Listem (former Dong-A X-ray Co.) 79
Mediana 79
Osstem Implant 80
Samsung Medison 80
Prosonic 80
Royal Medical 80
S M Medical Co 80
Sam Yang 81
Shinhung 81
Sometech 81
Vatech 81
Wonju Medical Industry Techno Valley 81
Multinational Manufacturers 82
Becton Dickinson 82
GE Ultrasound Korea 82
Gambro 82
Siemens 82

Multinational Activity 83

Accessing the Market 84
Market Environment 84
Distribution 85
Customs duties 86
Free Trade Agreements 86
Pricing & Reimbursement 86
Trade Fairs 87
KIMES 87

Medical Device Regulations 88
Medical Device Act of 2003 88
Class I notification 88
Class II & III approval 88
Exemptions from product testing 88
Non-exempt products 89
Clinical trials 89

Methodology & Sources 90
Trade Code Classifications 90
Methodology 92
Sources 93

List Of Tables

Espicom Analysis of the South Korean Medical Market, 2013 2
Economic Projections, 2013-18 4
Summary of Key Data, 2006-12 7
Financial Status of the Health Insurance System, 2007-12 (100 million Won) 8
Leading Destinations for South Korean Medical Device Exports 10
Medical Device Production Trends (Billion Won) 2003-2011 10
Top 10 Medical Device Producers by Category, 2011 (Million Won) 11
Wonju Medical Equipment Techno Valley 11
South Korean Medical Device Market by Category, 2012 15
Projected Medical Device Market, 2012-17 17
The South Korean Medical Device Market, 2007-17 (US$ millions) 19
The South Korean Medical Device Market, 2007-17 (US$ per capita) 20
The South Korean Medical Device Market, 2007-17 (% of Total) 22
The South Korean Medical Device Market, 2007-17 (% Change) 23
The South Korean Consumables Market, 2007-17 (US$ millions) 25
The South Korean Consumables Market, 2007-17 (US$ Per Capita) 25
The South Korean Consumables Market, 2007-17 (% Change) 25
The South Korean Diagnostic Imaging Market, 2007-17 (US$ millions) 28
The South Korean Diagnostic Imaging Market, 2007-17 (US$ Per Capita) 28
The South Korean Diagnostic Imaging Market, 2007-17 (% Change) 29
The South Korean Dental Products Market, 2007-17 (US$ millions) 31
The South Korean Dental Products Market, 2007-17 (US$ Per Capita) 31
The South Korean Dental Products Market, 2007-17 (% Change) 31
The South Korean Orthopaedic & Prosthetic Products Market, 2007-17 (US$ millions) 33
The South Korean Orthopaedic & Prosthetic Products Market, 2007-17 (US$ Per Capita) 33
The South Korean Orthopaedic & Prosthetic Products Market, 2007-17 (% Change) 34
The South Korean Patient Aids Market, 2007-17 (US$ millions) 35
The South Korean Patient Aids Market, 2007-17 (US$ Per Capita) 35
The South Korean Patient Aids Market, 2007-17 (% Change) 36
The South Korean Other Medical Devices Market, 2007-17 (US$ millions) 37
The South Korean Other Medical Devices Market, 2007-17 (US$ Per Capita) 37
Summary Medical Imports by Product Area, 2007-11 (US$000s) 42
Summary Medical Imports by Product Area, 2007-11 (US$000s % Change) 42
Summary Medical Imports by Product Area, 2007-11 (Won 000s) 43
Summary Medical Imports by Product Area, 2007-11 (Won % Change) 43
Summary Medical Imports by Product Area, 2007-11 (% of Total) 44
Leading Medical Equipment Suppliers by Product Area, 2011 (US$000s) 46
Top 20 Suppliers to the South Korean Market, 2011 (US$000s) 48
Detailed Imports of Medical Equipment, 2007-11 (US$000s) 49
Detailed Imports of Medical Equipment, 2007-2011 (Growth Trends) 51
Detailed Imports, Leading Suppliers, 2011 (US$000s) 53
Summary Medical Exports by Product Area, 2007-11 (US$000s) 57
Summary Medical Exports by Product Area, 2007-11 (US$000s % Change) 57
Summary Medical Exports by Product Area, 2007-11 (Won 000s) 58
Summary Medical Exports by Product Area, 2007-11 (Won % Change) 58
Summary Medical Exports by Product Area, 2007-11 (% of Total) 59
Leading Medical Equipment Destinations by Product Area, 2011 (US$000s) 61
Top 20 Destinations for South Korea Exports, 2011 (US$000s) 63
Detailed Exports of Medical Equipment, 2007-11 (US$000s) 64
Detailed Exports of Medical Equipment, 2007-2011 (Growth Trends) 66
Detailed Exports, Leading Destinations, 2011 (US$000s) 68
Balance of Medical Trade, 2007-2011 (US$000s) 70
Monthly Exports of Medical Equipment (US$Millions) 72
Medical Device Manufacturers 2003-11 73
Medical Device Manufacturers by Output Value, 2011 73
Medical Device Manufacturers by Company Size, 2011 74
Medical Device Production by Category 2007-11 (Million Won) 74
Medical Device Production by Category 2007-11 (US$ Millions) 75
Top 30 Medical Device Products by Category 2008-10 (Million Won) 76
Top 10 Medical Device Producers by Category, 2011 (Million Won) 77
Wonju Medical Equipment Techno Valley Selected Manufacturers 80
HS Trade Codes Used in This Report 89
HS Trade Codes, Rearranged 90

List Of Charts

South Korean Health Expenditure Per Capita, 2001-2012 (US$) 6
Medical fee coverage increase rates 9
South Korean Medical Device Market by Category, 2012 (%) 15
Change in the South Korean Medical Device Market, 2007-17 (%) 16
CAGR of the South Korean Medical Device Market by Product Area, 2007-11 (%) 16
Projected CAGR of Medical Device Market by Product Area, 2012-17 (%) 18
The South Korean Market for Consumables, 2007-17 (US$ millions) 26
The South Korean Market for Consumables, 2007-17 (CAGR) 26
The South Korean Market for Diagnostic Imaging, 2007-17 (US$ millions) 29
The South Korean Market for Diagnostic Imaging, 2007-17 (CAGR) 30
The South Korean Market for Dental Products, 2007-17 (US$ millions) 32
The South Korean Market for Dental Products, 2007-17 (CAGR) 32
The South Korean Market for Orthopaedic & Prosthetic Products, 2007-17 (US$ millions) 34
The South Korean Market for Orthopaedic & Prosthetic Products, 2007-17 (CAGR) 34
The South Korean Market for Patient Aids, 2007-17 (US$ millions) 36
The South Korean Market for Patient Aids, 2007-17 (CAGR) 36
The South Korean Market for Other Medical Devices, 2007-17 (US$ millions) 38
The South Korean Market for Other Medical Devices, 2007-17 (CAGR) 39
Imports of Medical Equipment & Supplies, 2003-2011 (US$000s) 40
Change in Imports of Medical Equipment & Supplies, 2004-2011 (%) 41
CAGR of Medical Imports by Product Area, 2007-11 (%) 44
Medical Equipment Imports by Product Area, 2011 (%) 45
Leading Medical Equipment Suppliers, 2011 (%) 47
Exports of Medical Equipment & Supplies, 2003-2011 (US$000s) 55
Change in Exports of Medical Equipment & Supplies, 2004-2011 (%) 56
CAGR of Medical Exports by Product Area, 2007-11 (%) 59
Medical Equipment Exports by Product Area, 2011 (%) 60
Leading Medical Equipment Destinations, 2011 (%) 62
Map of South Korea’s Metropolitan Cities and Provinces 84

The Medical Device Market: South Korea

Published By: Espicom Limited

Price:

How to Purchase

Purchase products from our site in 5 easy steps. Please follow the description given below to complete your purchase process.

Step 1:

Select the report title of your interest, and Click on Buy Now button next to the Price option.

Step 2:

You will arrive at the Purchase page, where you will be requested to Signup (New User) or Login (Registered User). Please note that in-keeping with the security check on the website, you must submit your full details to avoid any inconvenience arising from incorrectly entered data or counterfeit information.

Step 3:

After SignUp/Login, you will arrive at the Online Invoice Page. Select a Payment option via various methods: Debit Card / Credit Card / by Invoice. MarketReportOnline accepts Visa, MasterCard, American Express and all major credit cards. MarketReportOnline uses ICICI, HDFC, Citibank, American Express & Paypal as our Online Payment Gateway Partners. Clicking on a payment option will take you to the corresponding Payment Gateway page.

Step 4:

Once at the Payment Gateway, please complete the Payment Process to purchase your desired report.

Step 5:

Once you have successfully completed the purchase process, you will receive a confirmation email. You will then either be able to download your report immediately (in PDF Format) from the Account Login button, or the report will be emailed to you directly, depending upon the agreement we have with the publisher. For Orders that are deliverable via email and placed after working hours, the delivery of the reports will be made on the next business day. Please note, if you select purchase by invoice, you will receive your report only once the payment has been received. If you have any queries about how to order, please Contact Us .

sales@marketreportsonline.com + 1 888 391 5441

Using our subscription option, you get access to market research reports and industry data of Industry Profiles market as per your needs. Get the best of Industry Profiles research reports by utilizing your research budgets in an optimum way.
More about our Subscription option

Get Email alerts about market research reports from industries and publishers of your interest: