[Market Economy Guide] Hidden Treasure in the Field

Korea’s medical services are among the world’s best in both quality and price

Only by lifting various regulations can they become a true jewel

There is an old fable about a man who trusted only in his luck and remained poor all his life. In his youth, a fortune-teller predicted that he would “live well as a rich man.” Originally a farmer, the man believed only the fortune-teller’s words and made no effort at all. He did not plow his field or sow seeds. He spent every day indulging himself in idleness and dissipation. Even as his household grew poorer, he remained self-satisfied. That was because he believed, “Someday I will surely become rich!”

The fable of “you will become rich”

But as the years passed, the man did not become rich. Even after he had grown old, he was still poor and living a hard life. Before long, he could not even manage one meal a day, so he had no choice but to go out to the field. If he did not work, he was about to starve to death. With tears in his eyes, he began to hoe the ground. The moment he swung his hoe into the earth, something struck the tip of it. Startled, he dug further. To his astonishment, an enormous treasure of gold and silver was buried underground.

The fortune-teller’s words that he would become rich had been true. But by then it was already too late. The man had become a white-haired old man and had already wasted many years. Even if he obtained the treasure now, he had little time left to enjoy that wealth and glory. Beating his breast, he regretted the years gone by. “Ah, if only I had come out to the field and hoed the ground back then!”

More and more regulation in the name of “healthcare is a public sector”

This fable carries the message that without effort, even good fortune cannot be discovered. The poor farmer who lived in poverty despite having treasure buried in his own front yard reflects the current reality of Korea’s healthcare sector. Compared with the English-speaking world, Korea’s healthcare sector is relatively inexpensive, while the quality of its medical services is excellent enough not to lag behind those countries. This is a powerful driver that could give Korea a competitive advantage in the global healthcare industry. Yet despite already possessing ample competitiveness, Korea’s overseas expansion in healthcare and its attraction of foreign medical tourists remain minimal. The reason is that Korea’s healthcare sector is bound within the public domain and therefore cannot move forward as a commercial business.

Because of the complex regulations characteristic of the public sector, hospitals are not inclined to engage in aggressive marketing, and patients are not inclined to make the effort to come. Naturally, the number of foreign patients in Korea’s healthcare sector remains dismally low. This is no different from the plight of a farmer living in poverty despite having treasure buried in his front yard.

Although Korea is still sitting idle, medical tourism is already a global trend. Southeast Asia in particular is generating enormous wealth every year through medical tourism. Thailand’s Bumrungrad Hospital is a representative example. Bumrungrad Hospital attracts large numbers of overseas clients every year with prices that are only 20–30% of those in the United States and with reliable standards of medical service. More than 30% of the hospital’s staff hold U.S. medical doctorates, and it provides patients with cutting-edge medical facilities and premium medical services. In 2010, the hospital treated a total of 1.2 million patients, of whom 420,000 were foreigners. The nationalities of those foreign patients were also diverse, reaching about 190 countries. At the time, the total number of foreign patients entering Thailand was 2 million. But in the same year, Korea had only about 80,000 foreign patients.

Why foreign healthcare industries thrive

As noted earlier, the reason so few foreign patients visit Korean hospitals is not because the quality of care is low. It is because Korea’s healthcare sector is tied to the public domain and constrained by excessive regulation, to the point that bringing in even a single foreign patient is difficult. That is why hospitals do not bother to pay much attention to foreign patients, and foreign patients in turn choose hospitals in other countries that are easier to visit. Because of Korea’s complex and stringent regulations, the country is helplessly watching foreign patients be taken by other nations.

The strong medical services and low prices Korea currently possesses are like treasure buried in the soil. Unless unnecessary restrictions are removed as soon as possible and healthcare reform is carried out, Korea may one day shed tears of bitter regret like the farmer in the fable mentioned above.

◆ Please remember

The reason so few foreign patients visit Korean hospitals is not because the quality of care is low. It is because Korea’s healthcare sector is tied to the public domain and constrained by excessive regulation, to the point that bringing in even a single foreign patient is difficult. That is why hospitals do not bother to pay much attention to foreign patients, and foreign patients in turn choose hospitals in other countries that are easier to visit.

Sung-no Choi, President of the Center for Free Enterprise (CFE)

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Original title: [시장경제 길라잡이] 밭 속의 금은보화

Author: Sung-no Choi

Date: 2019-09-16

Source: https://www.cfe.org/bbs/bbsDetail.php?cid=column&pn=12&idx=21870