‘Korea should not waste its hard-won opportunity for global leadership’

Chung Hyun-cheol

Professor in Department of Medical Oncology,
Yonsei University College of Medicine

Chung Hyun-cheol, a noted oncologist in Korea, has taken part in more than 200 clinical trials, including genomics-based early phase trials and first-in-human trials of anti-angiogenesis agents. His main research interest is gastric and breast cancer.

Korea’s healthcare industry is enjoying its good days. Its hospitals are packed with foreign patients, its doctors are speaking at the podiums of international conferences and its pharmaceutical companies are increasing their research and development (R&D) investment like never before. There has never been a better time for the country’s healthcare industry in terms of financial gains and global reputation. But if you believe it will continue to thrive, you are an optimist, says Professor Chung Hyun-cheol at Severance Hospital. The noted oncologist reckons that Korea today is in a position where it has to resolve some complicated questions in order to move forward. The next five years, he said, will be critical for the nation’s healthcare industry and future. “If Korea misses the opportunity it has now, I think there won’t be any better ones for a long time,” Chung said in an interview. “As industries like shipbuilding and steel are crumbling, we all should cooperate to find ways to get the most out of the emerging industry. I mean, what else do we have now?” If the country can manage to seize the opportunity, he said, the rewards may be the biggest it has ever seen. Optimists can say Korea is in a terrific position. The country may not have a population big enough to become a global healthcare market, but it is interconnected with populous China and Southeast Asia. Moreover, unlike its neighboring countries that are starting to develop their medical infrastructure, Korea already has great infrastructure, sophisticated surgeons and researchers and world-class technologies.
All these advantages make Korea attractive both as a seller and buyer in the growing healthcare market in Asia. “Having Asian leadership means a lot more now than 10 years ago,” Chung said. “By many standards, Korea is a medical leader in the burgeoning Asia. Now, the key question for Korea is how to make the best use of Asia’s growing influence and its own resources in the coming era.” In fact, the United States is losing its traditional dominance in biomedical R&D. According to research done by the University of Michigan Health System in 2014, the U.S. share in the global biomedical R&D business declined to 45 percent from 51 percent between 2007 and 2012, while Asia’s swelled to 24 percent from 18 percent during the same period.
The bad news, however, is that other Asian nations, especially China, are catching up fast to Korea in the biomedical field. According to the Science and Engineering Indicators report by the U.S. government this year, China makes up 20 percent of the world’s total R&D expenditures, the second largest only after the United States. Given the size of its investment and the pace of its development, Chung believes China’s rise will be quick. “Although Korea still leads China in many biomedical areas, it won’t be long until China catches up,” he said. “This is why Korea should create its own game instead of running on the same track with followers.” One of his suggestions is the expansion of Korea’s role as an agenda-setter in and a gatekeeper to the Asian biomedical industry. “In terms of both quantity and quality, Korea’s research ability has improved greatly over the past few years. Korean doctors now participate in the preclinical phase of drug development and select research partners,” Chung said. “Given its global standing and its network within Asia, Korea can play such roles.” According to the Korea National Enterprise for Clinical Trials, Korea ranked ninth in the world (second in Asia after Japan) in the number of clinical trials conducted in 2015. This is a dramatic improvement from 1987, when Chung had to explain to government officials what the term “clinical trial” means. European countries used to be dominant in the biomedical industry until the beginning of the 1980s, when the United States surged to the forefront. And it may soon be Asia’s turn. “I believe Korea has great potential to lead the world to the new era,” he said. “Yes, I’m an optimist.”

Working in tandem with government
Will the healthcare industry bring economic prosperity to Korea? The government has been cautious in approaching this question. The healthcare industry can enrich the nation and rejuvenate its economic system. Over the past few years, the industry has produced some convincing numbers. According to the Ministry of Health and Welfare, the number of foreigners visiting Korea for medical purposes last year was 297,000, up from 60,000 in 2009. Revenue jumped to 669.4 billion won ($600 million) from 54.7 billion won during the period. In addition, more than 500,000 jobs have been created in the healthcare industry from 2010 to 2015, according to the Korea Employment Information Service. Last year, Hanmi Pharmaceutical hit the jackpot by exporting new technology worth 8 trillion won in the largest license deal for a Korean drug-maker. These figures are impressive accomplishments, but at the same time, they under-represent what Korea is truly capable of, Chung said. The number of foreign visitors to Thai private hospitals last year, for example, was 2.81 million and the Southeast Asian nation earned about $3 billion in revenue, according to Thai think tank Kasikorn Research Center. The good news is the Korean government has realized the potential value of its healthcare industry lately. Last month, the health ministry announced that it will create a department dedicated only to supporting domestic hospitals and biomedical firms advance abroad. The ministry also allocated the largest budget of 532.3 billion won to R&D this year (2016). All these efforts will be helpful. But if Korea’s healthcare industry is to grow faster, the government needs to change its view on the industry, Chung said. “For example, whether to expand the national health insurance for incurable diseases such as cancer is an important issue every year,” he said. “I urge the government to look at it as an investment (for clinical data and know-how) rather than a cost.” Also, the government should trust the industry and give it more freedom. The Ministry of Drug and Food Safety is notorious for being too rigid, which discourages new ideas. Many people believe this was one of the reasons Korean pharmaceutical firms have remained largely as sellers of copycat drugs, having failed to develop blockbusters for a long time. No one expects the government to let the reins go, but it needs to loosen them a little to encourage people in the industry to be more creative in their experiments. Given Korea’s resources, realists may say it needs a miracle to become a global leader in the biomedical industry. But after Korea quickly rose from the ashes of the devastating Korean War, people here learned that miracles can happen.