Life Science opportunities

An Expert's View about Nursing Care Facilities in South Korea

Last updated: 29 Jul 2011

In 2010, the percentage of over 65’s was 11.3 per cent jumping 24 per cent over the last 5 years. By 2025, it is forecast to be over 20 per cent. Healthcare expenditure by seniors has increased 14.5 per cent (£995 million) from the previous year.

Sector briefing Life Science opportunities in Korea (South) Why Korea? th South Korea is the 12 largest economy in the world, has a population of 50 million and a predicted GDP growth of 4.5 per cent in 2011. Total healthcare expenditure has risen steadily from about 4.4 per cent in 1990 to 6.5 per cent of GDP in 2008 as a result of the world?s most rapidly ageing populations. In 2010, the percentage of over 65?s was 11.3 per cent jumping 24 per cent over the last 5 years. By 2025, it is forecast to be over 20 per cent. Healthcare expenditure by seniors has increased 14.5 per cent (£995 million) from the previous year. This is 31.6 percent of the total th expenditure. ?Korea (South) is the 12 largest economy in the world Find general information on the Korean nd market and forecast the 2 ageing conditions on UKTI?s website. The Doing Business Guide for South Korea gives an society by 2050 among OECD overview of Korea?s economy, business countries.? culture, potential opportunities and an introduction to other relevant issues. UK Trade & Investment Sector briefing: Life Science opportunities in South Korea market size in 2009 was around £2.03 billion, Opportunities with 12 per cent growth annually. Korea is mainly supplied through imports which is 65 Biotechnology per cent of the total market, largely from the Korea's bio industry has grown rapidly from USA, Germany and Japan. 1998, now holding a 3 per cent share of the global market. The size of the market There is a strong demand for imported medical increased sharply from £1.35 billion in 2004 to devices such as radiotherapy/imaging £2.07 billion in 2007 marking 15.3 per cent equipment, orthopaedic equipment and dental growth per year. The Korean Government has products etc. th the goal of becoming the 5 strongest biotech nation in the world by 2018. The acquisition of Research & Development (R&D) core technologies and the development of Following activities of pharmaceutical and supporting, industrial infrastructure are top biotechnology companies, there are priorities. opportunities for R&D collaborations and technology transfers in the fields of oncology, With increasing numbers of major cardiology, drug discovery, metabolic diseases, biotechnology-based medicines losing their vaccines, neuroscience and tissue engineering patent, the Korea Food & Drug Administration & regenerative medicine etc. has published regulatory pathways for biosimilars in 2009. Several biopharmaceutical companies are already preparing for clinical U-Health (Smart Care) trials and, benefiting from government funds, Following the rapid ageing society in Korea and more local companies are developing new development of a wide range of IT gadgets, U- ones. The local supply of clinical trials and Health (Ubiquitous-health) is drawing strong regulatory consulting services that conform to attention across the nation. global standards are insufficient, leading to high demand for international partnerships. The size of the market is expected to reach £560 million in 2011 increasing from £181million in 2008. The industry forecasts Pharmaceuticals th this to rise further reaching approx. £1.71 South Korea is the 13 largest pharmaceutical billion by 2014 growing 12 percent annually. market accounting for 1.7 per cent of the global market share. The Korean Since 2010, the Korean government is pushing pharmaceutical market is generics-oriented but forward three year project called ?Smart Care recently more companies have invested in drug Service? by investing £34 million. Under this discovery. The size of the market was £10.2 movement, major hospitals and companies are billion in 2009 and it has been marking annual actively developing U-health care system and growth rate of 10 per cent due to Korea?s technology. rapidly ageing population, investment by the Korean Government and the private sector, Major opportunities place in collaboration and and future economic growth. transfer of technology and service in health & information, senior care, facilities and health There is strong demand for licensing and disease management, etc. pharmaceutical products in Korea. Although Korea has a good foundation in the traditional fermentation, antibiotic and diagnostic EU-Korea FTA industries, Korean pharmaceutical companies The European Union and Korea signed the Free have not been very successful in independently Trade Agreement (FTA) on 6 October 2010 developing a molecule leading to a resulting in the removal of 97 per cent of all pharmaceutical product. Global outsourcing is tariffs cutting ?1.6bn of duties annually for EU becoming a more accepted approach to R&D exporters from July 2011. and product development in Korea. Some of the ways the FTA will influence the Medical Devices Life Sciences sector are: The Korean medical equipment market is the th 10 largest in the world, accounting for about 1.9 per cent of the global market share. The UK Trade & Investment Sector briefing: Life Science opportunities in South Korea Change in Tariff Item Timing Now Later Biotechnology Up to 8% 0% 3 years Immediatel Pharmaceuticals 8% 0% Medicines 0-3 years 8% 0% Medical devices 5 years 8% 0% 0- (Source: European Commission) Once the changes are complete, exports from European countries are expected to increase. In addition, the FTA will improve IPR regulations and provide greater predictability in decision making. Co-operative development and R&D will also be encouraged. Market Entry ? Factors for Success To compete in South Korea UK companies are recommended to have a capable local distributor, licensee or franchise partner who has an established network in the market and extensive market knowledge. A long-term perspective and a reliable partnership between supplier and their local partner is one of the key factors in achieving success. You can be alerted to business opportunities on a regular basis by registering on the UKTI website. Find out more on UKTI?s business opportunities service on the UKTI website. UK Trade & Investment Sector briefing: Life Science opportunities in South Korea Major events and activities UKTI contacts KIMES Sujung Hong (Korea International Medical & Hospital) Trade Officer Web: http://www.eventseye.com/fairs/f- British Embassy Seoul kimes-8714-1.html Tel: (0082 2) 3210 5596 Time: March 2012 Email: Sujung.Hong@fco.gov.uk www.ukti.gov.uk BIO KOREA Web: Soomee Moon http://www.biokorea.org/2011/english/main/m Trade & Investment Manager ain_eng.php British Embassy Seoul Time: 28-30 September 2011 Tel: (0082 2) 3210 5625 Email: Soomee.Moon@fco.gov.uk www.ukti.gov.uk Find full details of all events in this country and sector on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis. UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events. UK Trade & Investment Sector briefing: Life Science opportunities in South Korea Next steps - ? Arranging appointments How UKTI can help ? Organise seminars or other events for you to meet contacts and promote your British companies wishing to develop their company in the Korean market business in the Korean market are advised to undertake as much market research and This work is available via our Overseas Market planning as possible in the UK. UKTI?s team in Introduction Service (OMIS) a chargeable Korea (South), with its wide local knowledge service which assists British-based companies and experience, can provide a range of wishing to enter or expand their business in services to British-based companies wishing to overseas markets. grow their business in global markets. To find out more about commissioning this This can include: work, or accessing other UKTI services and ? Provision of market information specialist advice, please visit the UKTI website ? Validated lists of agents/distributors to find contact details for your local UKTI ? Key market players or potential office. customers in the Korean market ? Establishment of interest of such contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2011 by UK Trade & Investment. Crown Copyright © You may reuse this information (not including logos, images and case studies) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit www.nationalarchives.gov.uk/doc/open-government-licence/ or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gsi.gov.uk This publication is also available from our website at www.ukti.gov.uk or for more information please telephone +44 (0)20 7215 8000. UK Trade & Investment Sector briefing: Life Science opportunities in South Korea
Posted: 28 July 2011, last updated 29 July 2011