Singapore, Dec 5, 2006: According to Research and Markets recent data on “South Korean Hospital Information Systems Markets”, South Korea spends an estimated $49 billion on healthcare each year. This figure is expected to further grow at an annual rate of 13 percent, largely benefiting hospital information systems (HIS) markets in South Korea.

Key drivers responsible for the growth of the HIS markets include the nationwide medical insurance program and extensive government support through regulations and legislations.

South Korean health care system is predominantly driven by the private sector. Private hospitals and clinics account for 92.6 percent of all medical facilities in terms of the number of facilities and 87.4 percent in terms of the number of beds.

The government is looking to mobilize direct foreign investment in the healthcare industry, and as new opportunities (such as privatization of facilities) occur, it hopes to attract a further $15 billion toward the reinforcement of the country’s healthcare facilities by 2010.

In keeping with the South Korean Government's initiatives to modernize its healthcare delivery, the Ministry of Health and Welfare (MOHW) is exploring ways of using information technology to improve medical insurance services and ensure operational efficiency.

In March 2002, the South Korean Government revised the Medical Act, enabling the use of electronic order communications, electronic medical records (EMR) by doctors.

This law took effect in March 2003 and since then its new provisions have been promoting as well as accelerating the implementation of novel medical information systems such as the total hospital information systems and EMR for the coming years in South Korean hospitals.

Most of the South Korean hospitals with more than 100 beds are in the process of installing HIS, as a result the South Korean HIS market holds a huge market potential, says the analyst. New regulations necessitating the conversion of paper records to the electronic form are likely to catalyze market growth and this, undoubtedly, is expected to lead to increased demand for medical IT equipment and systems in South Korea.