"Regulatory Relaxation Needed to Prevent Side Effects of Telemedicine Introduction... Support for Korean Companies Required"

[Asia Economy Reporter Jeong Hyunjin] As positive perceptions of telemedicine have spread alongside the COVID-19 pandemic, opinions have emerged that regulations should be eased on the premise of establishing measures to prevent side effects caused by the introduction of telemedicine. Since the global telemedicine market is expected to grow rapidly, support should be provided to enable Korean companies to actively participate.

The Federation of Korean Industries (FKI) and the Korea Venture Business Association jointly held a seminar titled "Global Trends in Telemedicine and Korea's Response Direction" on the morning of the 20th at the FKI Hall. According to a survey conducted by the FKI last year, 62.1% of respondents had a positive view of telemedicine adoption, more than three times higher than the 18.1% who had a negative view.

Kwon Tae-shin, Vice Chairman of the FKI, said in his opening remarks, "The spread of telemedicine is a global trend, but in Korea, there has been almost no discussion recently about allowing telemedicine. In the 20th National Assembly, government and member bills were each proposed but discarded due to the expiration of the session, and in the 21st National Assembly, no medical law amendment bills have even been proposed, which is regrettable." Lee Joo-wan, Vice Chairman of the Korea Venture Business Association, emphasized, "The success or failure of innovative growth is essentially determined by whether a market-friendly business environment is created through regulatory reform. Currently, the Medical Service Act does not allow telemedicine, which suppresses domestic investment and hinders the development of related industries. Given that temporary allowance for infectious disease response has verified its safety and necessity, it is now time to fully allow telemedicine in line with the times."

Experts diagnosed that three conditions are necessary to introduce telemedicine: social consensus, government support, and legal and institutional arrangements. Professor Baek Nam-jong of Seoul National University College of Medicine, in his presentation titled "Domestic Telemedicine Introduction Trends and Tasks," said, "Telemedicine should be approached from the perspective of consumer convenience and future medicine, and it is a necessary system. However, from the provider's perspective, doctors see telemedicine as medical care but face legal risks of medical accidents, and although it takes more time, profitability is low."

Professor Baek added, "Concerns about commercialization and deterioration of medical service quality, personal information protection, and reasonable insurance fees are issues to consider," and said, "A strategy to alleviate concerns that primary medical institutions might be marginalized and to gradually expand applicable areas within the current medical system would be effective." He also stated, "Introducing telemedicine requires social consensus, government support, and legal and institutional arrangements," emphasizing, "Especially in terms of law and institutions, guidelines and mandatory requirements must be established, and reasonable insurance fees and payment systems must be implemented."

Kim Areum, Director of the International Medical Center at Inha University Hospital, who gave a presentation on "Global Trends and Implications of Telemedicine Promotion," said, "The United States encouraged the application of the same insurance fees for telemedicine and outpatient care for diseases in the private insurance sector through the Telehealth Parity Act. After the COVID-19 pandemic, Medicare also further relaxed restrictions, and the share of telemedicine in outpatient care in the U.S. increased explosively from 0.1% before the outbreak to 14% in April last year."

According to market research firm Fortune Business Insights, the global telemedicine market size is expected to grow rapidly from $34.3 billion in 2018 to $185.7 billion in 2026. The market size is largest in North America, followed by Europe, Asia-Pacific, Latin America, the Middle East, and Africa. Director Kim said, "In the Asia-Pacific region, China, Singapore, and Australia have led platform development by for-profit companies from the early stages of telemedicine introduction, and government support has been prominent before and after the COVID-19 pandemic. While these three countries actively adopted telemedicine due to the pandemic, Korea was conservative in its adoption."

Industry experts emphasized the need to ease regulations on telemedicine to enhance medical convenience and improve the efficiency of health insurance finances. Song Seung-jae, CEO of LifeSemantics, a digital health company, said in a telemedicine case presentation, "It is time to move beyond the pros and cons debate and seek ways to improve the efficiency of the National Health Insurance finances and normalize the medical delivery system through the institutionalization of telemedicine." He added, "It is necessary to establish mechanisms to protect medical personnel and the public through the introduction of appropriate licensing systems for services and products used in telemedicine and to prepare support measures for medical personnel."

Ban Ho-young, CEO of Neofect, a KOSDAQ-listed innovative medical solutions company, said, "We have developed seven remote rehabilitation products, including smart gloves, and export them to more than 40 countries, including the U.S." He added, "The telemedicine services temporarily allowed last year due to COVID-19 now require full approval through verification of technical stability and convenience." Ban also requested, "Before it is too late, the government should ease regulations on the Medical Service Act and medical data information so that domestic venture companies can shine in the global market."