Supply shortages are complicating the vaccination schedule in South Korea, resulting in depressed demand in 2021. However, the country will have a faster and more stable vaccination rollout in 2022, and COVID will have a diminishing impact on patient fear and treatment levels, which we expect to stabilize gradually. In comparison, healthcare exports remained on a solid track in 2021, and the government continues to strengthen healthcare industry capabilities in the 2022 budget. On the policy side, the government aims to control the growth of non-insured medical expenses and is increasing NHIS financial support to achieve the coverage goals of its healthcare reform.
Our analysts are constantly evaluating changing market trends to ensure you have the most updated and relevant information for your strategic decisions. Keep reading for our analysis of the key trends in South Korea that you need to pay attention to.
Funding and domestic vaccine development will compensate for the delayed vaccination schedule
Supply shortages are complicating the vaccination schedule in 2021 even though South Korea purchased sufficient vaccines. But South Korea will have a faster and more stable vaccination rollout in 2022 given the pace of domestic R&D and government support. The demand will be depressed through the end of 2021, but COVID will have diminishing impacts on patient fear levels.
Government support and COVID-related demand increase healthcare exports’ momentum
South Korea´s healthcare exports remained on a solid track in 2021, driven by biosimilars and diagnostic kits. The government continues to strengthen healthcare industry capabilities with financial support. The strong localization trend put pressure on sales of global companies in comparison to domestic companies, which are expanding hiring, especially in manufacturing.
The government is utilizing disclosure requirements to indirectly control pricing of non-insured services
The government is continuing health reform by increasing financial support for NHIS and expanding insurance coverage to reduce the financial burden on patients. Meanwhile, the government is trying to have more control over non-insured services by expanding the scope of mandatory disclosure of non-insured items to monitor hospital behavior and control the growth of non-insured medical expenses.
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