“Key to healthcare innovation is pharmaceutical industry"

Park Min-soo, Director of Health Insurance Policy Bureau under Office for Planning and Coordination at MOHW

Healthcare sector’s budget this year is about KRW 13 trillion with KRW 2 trillion state funding

Korea has highest R&D investment rate against GDP and it would focus on new drug development

Korea’s Ministry of Health and Welfare (MOHW) has stated two core goals of the current administration are ‘creating an inclusive welfare state’ and ‘supporting innovative growth of emerging industry.’ The key is definitely the pharmaceutical industry.

 

During a question and answer session with correspondents, Park Min-soo, a director of Health Insurance Policy Bureau under Office for Planning and Coordination at MOHW, said this year the ministry is committed to support all-around new drug development covering from basic science research to commercialization, and to strengthen industry competitiveness.

 

Director Park, in charge of the ministry’s budget plan each year, allocated 12.9 trillion won on healthcare sector this year.

 

The plan reflects the record-high National Health Insurance state funding of 1.86 trillion won, whereas 2.7 trillion won was allocated besides for healthcare.

 

Director Park stressed the importance of pharmaceutical industry among the industries government is backing up.

 

He elaborated, “Other than the goal of creating inclusive welfare state, the government is devoted to support innovative growth of emerging industry.” “The government is trying to find the hidden gem of the healthcare industry and create an environment to polish it.

 

Among the emerging industries of IT, bio, pharmaceuticals, agriculture, and food the government is currently pushing on for innovation, the pharmaceutical industry is the most valuable key,” he continued.

 

One of ongoing inter-ministerial programs supporting the key industry is the big data platform project.

 

Director Park explained, “Big data utilization is expected to embody vast amount of data, but it needs the government to build a foundation to optimize utilization of the information, because it has a limitation of private information protection.” So apparently the director allocated budget to connect the dots between dispersed information.

 

Government support for R&D is another highly expected project.

 

He emphasized the investment value for R&D is high as Korea’s R&D investment rate against GDP is at worlds highest.

 

“From basic science research to commercialization, we need to bridge the gaps to ultimately make a living out of the industry.

 

To strengthen the industry competitiveness, the ministry would support new drug development in every step of the way and also train specialists to reinforce the industry strength,” Director Park said.

 

He added, “Laying the groundwork for the R&D system would encourage more research activities and contribute on advancing technology further.

 

The result may not be tangible immediately, but the government is committed to continue support it.” Moreover, Director Park explained about MOHW’s plan to open a tentatively named ‘Office for Health Policy’ that reinforces government’s preventive healthcare programs to reduce medical expense and solve the issue of increasing dependants in the aging society.

 

Additionally, he emphasized the importance of preventive healthcare programs to get under way from this year.

 

“The point of the policy in the end is to make people live their lives without dealing with serious health condition.

 

Mobile Healthcare program providing high-risk chronic disease management would open 30 more centers this year, while the mental health sector would secure human resources and open Emergency Intervention Team with 39 percent increase in budget,” he said.