Updated on 21 June 2012
South Korea provides strong financial support for its elderly population through impressive access to healthcare insurance and reimbursement. However, the South Korean government is trying to reduce the huge financial burden, this may cause through comprehensive healthcare reforms. Key reforms introduced by the Korean government in the past decade include the separation of drug prescribing and drug dispensing, and the introduction of the Korean Diagnosis Related Group (KDRG) system.
Despite the reforms, investments coming into the South Korean healthcare sector will benefit the industry and patients alike. The Korean regulatory authority approves medical products through a transparent, strong and efficient regulatory system, and this clarity and efficiency attracts foreign investments, fuelling the growth of the South Korean healthcare market.
The pharmaceutical market of South Korea was valued at $14.6 billion in 2010, following growth at a CAGR of 7 percent from 2005 to 2010. Market growth is expected to continue at a CAGR of 4.7% until 2020.