Medical Equipment and Devices
Republic of Korea
Overview
2004 2005 2006 (estimated)
Total Market Size 2,107.5 2,658.2 2,613.5
Total Local Production 1,356.5 1,787.7 1,753.4
Total Exports 598.3 750.8 778.1
Total Imports 1,384.9 1,621.4 1,638.3
Imports from the U.S. 447.0 545.6 560.7
(Unit: USD million)
(Source: Korea Medical Devices Industry Association)
[USD1= 1,200 Won (2004), 1,100 Won (2005), 950 Won (2006)]
One of the largest Asian markets for medical devices, the Korean market was valued at USD2.7 billion in 2005 and is expected to increase to approximately USD2.6 billion in 2006. According to industry sources, the medical equipment market is forecast to grow at an average annual rate of 10-15 percent over the next few years. However, one important factor that may slow the growth rate will be the pricing and reimbursement measures that the Korean government adopts to deal with the increasing costs of their national healthcare insurance system.
Korea depends on advanced medical devices from the U.S., Japan, and the EU to supply about 60 percent of total market demand. In 2006, total imports of medical devices were estimated to be USD1.8 billion. U.S. imports were estimated to be USD 638 million, representing a 34 percent import market share. Market demand for advanced and innovative medical devices is forecast to remain strong in 2006 and over the next few years, as Korea’s hospitals continue to purchase advanced technology products from abroad and with growing numbers of elderly Korean patients requiring sophisticated medical procedures. In general, Koreans are increasingly demanding better care from their national healthcare system as the standard of living continues to improve in the world’s eleventh largest economy. Another factor favoring the use of imported advanced medical equipment and devices is the growing number of Korean doctors educated in the U.S. and Europe.
Best Products/Services
- Stents
- Artificial joints
- Magnetic resonance diagnostic devices
- Cardiovascular instruments
- Radiological devices
- Invitro diagnostic products
- Dental implants and supplies
- Surgical apparatus (laser and electric)
- Catheters
- Ophthalmic equipment
- Laser instruments
Opportunities
The Korean government is in the process of establishing world-class hospitals with 600-800 beds in the Incheon Free Economic Zone (IFEZ). One to two foreign hospitals will be permitted to operate in the FEZ, with the first hospital targeted to open in 2008. Since this is the first time that Korea has invited foreign capital participation in healthcare (moreover outside of the national healthcare system), the development of the Incheon FEZ provides a good export opportunity for U.S. suppliers of high-end medical equipment and devices.
Resources
Trade Shows
Korea International Medical, Clinical, Laboratories & Hospital Equipment Show 2007
Key Contacts
Ministry of Health and Welfare
Korea Food & Drug Administration
Health Insurance Review Agency
Local Contact
(Ms.) Yoon-Shil Chay
Senior Commercial Specialist
Commercial Service Korea
U.S. Embassy
32 Sejong-ro Jongro-gu
Seoul 110-710 Korea
Tel: 82-2-397-4439
Fax: 82-2-737-5357
Email: yoon.shil.chay@mail.doc.gov
Website: www.buyusa.gov/korea