Lee Hyung Hoon, Vice Minister at Korea’s Ministry of Health and Welfare, outlines his vision for strengthening universal healthcare while positioning Korea as a global biohealth leader. He discusses AI-driven healthcare, regulatory reform, regional access, supply chain resilience, biomedical innovation, and international collaboration, highlighting Korea’s ambition to become the world’s most trusted health partner.
Vice Minister Lee, you bring three decades of public service to this role. What has shaped your commitment to advancing Korea’s healthcare system?
I became a public servant in 1995, entering through Korea’s national civil service examination, and have spent my entire career since at the Ministry of Health and Welfare. I studied business administration as an undergraduate before pursuing a graduate degree in public administration. At the time, Korea was still developing as a welfare state, and I was drawn to the Ministry of Health and Welfare specifically because it was a government ministry with an important role in shaping policies that were new to Korean society.
I believe that public service is a profession that sits closest to people’s daily lives, designing, implementing and evaluating the policies that shape people’s well-being directly. Healthcare policy represents one of the government’s most fundamental responsibilities: protecting the life and health of our citizens, across every stage of life, from prevention and treatment of diseases to long-term care for the elderly. I have always believed that improving quality of life at the individual level is inseparable from building a sustainable society and strengthening national competitiveness, and that conviction has anchored my entire career.
As Vice Minister, I am responsible for balancing the views of a wide range of stakeholders, including those across government and industry, in shaping healthcare policy. I find this work particularly energising, as healthcare is a field that is constantly evolving.
Today, the world is changing very quickly with AI and digital technology, yet the fundamental human aspiration, to live a longer, healthier and more fulfilling life, remains unchanged. In Korea, the rapidly ageing population is causing our policy scope to expand well beyond the traditional disease prevention and treatment, into healthy ageing, long-term care and comprehensive life-long support. We see this demographic shift not merely as a challenge, but as a genuine opportunity. The advancement of biohealth technologies will be crucial for resolving these emerging issues. Biohealth is a strategic sector capable of both improving quality of life and driving future economic growth.
Korea has world-class healthcare professionals, high-quality medical services, strong R&D capabilities and globally competitive ICT infrastructure. Building on these strengths, I believe we can further develop this opportunity and position Korea as a true global leader in biohealth innovation.
Korea’s healthcare system is globally regarded as a model of efficiency and universal coverage. What are your key priorities for maintaining that standard going forward?
Korea’s healthcare system has earned global recognition by pursuing two values in careful balance: universality and innovation. These priorities will remain the guiding principles of our healthcare policy.
In terms of universality, Korea’s National Health Insurance system has a strong track record of expanding access. Introduced in 1977, it initially covered only corporations with more than 500 workers, as well as public officials and teachers. Then it was progressively expanded to achieve universal coverage in 1989. At the time, the health insurance system was administered by multiple insurers, such as workplace insurance and regional insurance. In 2000, they were consolidated into a single insurer system, the National Health Insurance Service (NHIS). I had been working in public service for five or six years at the time and had the opportunity to witness senior colleagues as they carried out the consolidation. It was a major undertaking, bringing together previously separate systems into one single, coherent structure.
Today, Korea’s National Health Insurance system is highly regarded internationally. Former US President Barack Obama, for example, has publicly praised it as a model worthy of emulation. We will continue to strengthen this foundation by expanding coverage and reinforcing regional and essential healthcare services, ensuring timely access to necessary care regardless of where people live.
Turning to innovation, rapid ageing and advances in medical technology are creating new challenges globally, not just in Korea. Meeting these challenges requires the continuous adoption of innovative healthcare technologies into clinical practice while ensuring the long-term sustainability of the healthcare system. Through National Health Insurance, we will support the timely adoption of new treatments and medicines, so that patients can benefit from medical advances without undue delay, while ensuring the value created by such innovation is fairly and appropriately recognised.
The Ministry has set an ambitious export target of USD 30.4 billion to position Korea as a global biohealth powerhouse. How does a strong domestic healthcare system serve as the launchpad for that ambition?
Korea’s advanced healthcare infrastructure has been a strong foundation for its biohealth industry’s growth and competitiveness. Through the National Health Insurance system, Korea has accumulated comprehensive health insurance data covering the entire population, and we are actively supporting the use of these data to advance research in innovative medicines, cutting-edge medical technologies and future healthcare solutions.
Korea has also built strong global competitiveness in biohealth. We rank second worldwide in approved biosimilars and third in the number of pharmaceutical pipelines, while Seoul has become one of the world’s leading clinical trial hubs, ranking second globally in the number of projects. Our world-class healthcare professionals, strong research capabilities and robust clinical trial infrastructure provide a solid foundation for translating innovative biohealth technology into real-world applications and supporting Korean companies as they expand internationally.
Beyond infrastructure, I would point to something less tangible but equally important: Korea’s openness to adopting new technologies. Korean healthcare professionals and patients alike have shown a strong willingness to embrace innovation and digital transformation, and this attitude has created a favourable environment for the rapid introduction and adoption of emerging technologies, including medical AI and smart hospitals.
I believe the same creativity, resilience and dynamism that helped propel Psy’s “Gangnam Style” and the pop group BTS to global prominence are also among Korea’s greatest strengths in healthcare. Openness to change, willingness to innovate and ability to turn bold ideas into reality are some of the strongest attributes of Korea.
Strong R&D pipelines depend on resilient supply chains. How is the Ministry balancing support for local innovation with ensuring a stable supply of critical raw materials, into 2026 and beyond?
Healthcare innovation is crucial not only for economic growth but for protecting human life and contributing to the advancement of global health. The Korean government is making investments in this area accordingly. The Ministry of Health and Welfare’s healthcare R&D budget has been increasing steadily in the past five years, and is expected to exceed KRW 1 trillion for the first time in 2026. These investments are aimed at accelerating the development of innovative medicines and advanced medical devices, by leveraging AI and Korea’s broader world-class IT capability. At the same time, they are intended to respond to unmet medical needs and directly improve people’s health.
We will continue to expand research in critical areas, including preparedness for infectious disease threats such as Disease X, breakthrough researches in cancer and dementia, and regenerative medicine for rare and incurable diseases. We will also foster a more open innovation ecosystem that encourages closer cooperation among researchers, companies and institutions. To strengthen Korea’s position in the global biohealth sector, the Ministry plans to identify 30 national strategic technologies for targeted R&D support.
The COVID-19 pandemic underscored just how critical resilient pharmaceutical and healthcare supply chains are. Building on that experience, Korea is expanding production capacity for medicines facing supply instability, supporting the designation and stockpiling of essential medicines, and promoting the use of domestically produced raw materials.
Particularly, in response to geopolitical disruption risks in the supply chains, such as the current situation in the Middle East, we have established a public-private consultative body bringing together healthcare professionals and relevant government ministries. Through this group, we are prioritising the securement of raw material supply, supporting patient access to treatment for rare diseases, and adjusting National Health Insurance reimbursement rates to reflect the exchange rate and cost pressures. The government regards securing supply chains for pharmaceuticals and healthcare products as a national security priority.
Korea is renowned for its tech-savvy infrastructure. How can AI and digital health innovation best improve patient outcomes and streamline the hospital experience?
Building on its commitment to strengthening regional, essential and public healthcare, the Korean government’s “AI Basic Healthcare Strategy” was announced on 22 July at a meeting chaired by the President. Under the vision of “Al for Life: Healthcare Innovation Accessible to All,” the strategy pursues three goals: delivering AI-driven healthcare innovation that people can experience in their daily lives; establishing nationwide digital infrastructure for AI-enabled healthcare transformation; and building a sustainable AI healthcare ecosystem.
This is designed to directly address structural challenges facing our healthcare system, which include the concentration of patients in large metropolitan hospitals, declining access to healthcare in some regions, and limited access to emergency care. The ultimate aim is to build a more patient-centred healthcare system in which high-quality care is available regardless of where people live. This strategy rests on the philosophy of an “AI Basic Society”, the belief that AI-driven benefits should be shared broadly among all populations rather than concentrated in certain regions or groups.
“AI Basic Healthcare” is the first step toward that broader vision, one where technological innovation meaningfully improves the lives of all citizens. I would add, personally, that I see health technology as something that ultimately still requires a human touch. AI and digital transformation are highly valuable for expanding knowledge and mastering new techniques. They will certainly make healthcare professionals much more productive and efficient.
For example, administrative tasks such as EMR documentation is time-consuming, but with new technologies, doctors can be alleviated with such tasks, to focus more on treating and caring for patients. But I do not believe these technologies will replace physicians entirely. Rather, the role of AI and digital technologies would be to enhance the capabilities of medical professionals, not to replace them. At the same time, as we expand the effective use of clinical and health data for research and public services, we will continue to ensure full compliance with Korea’s privacy laws regarding personal information.
A central pillar of your mandate is equitable healthcare access nationwide, particularly through the Regional Physician System. What milestones are you most proud of in bridging regional healthcare gaps?
Strengthening regional, essential and public healthcare is one of the current government’s central priorities. One of our most meaningful achievements has been easing the tension surrounding the discussions on increasing the physician workforce, while establishing a solid institutional foundation for training healthcare professionals who will serve the local communities directly.
For the whole year in 2025 and into this year as well, we have maintained a dialogue with the medical community, and we were able to bring the medical students back to their studies and the residents to resume their training, helping the healthcare system return to normal operation after a difficult period.
Another milestone was the establishment of a transparent, evidence-based framework for determining how many regional physicians to train. This was grounded on democratic deliberation with medical organisations and regional communities, and through scientific assessment of healthcare workforce supply and demand.
Through the new Regional Physician System, we have built a structured pathway to recruit, educate, train and retain physicians precisely where they are most needed: recruiting students with genuine ties to local communities; educating and training them in regional medical schools and teaching hospitals; and enabling them to return and serve those same communities. This is an approach aligned with WHO recommendations for strengthening local healthcare workforce.
Under this framework, we plan to support an average of 668 regional physicians annually over the next five years. Beginning in the 2027 academic year, 32 medical schools will introduce dedicated admission tracks for the Regional Physician System, with selected students supported with tuition, educational expenses and housing. These students will commit to ten years of service in designated regions upon acquiring medical licenses.
Looking ahead, our focus will be on strengthening every part of this pathway – from education and residency training to working conditions – so that the physicians serving in the regions on this track can take roots in the communities they serve and build long-term careers there, well beyond their mandatory service period.
We recognise that mandatory service alone cannot secure long-term retention. The real goal is to make the regional physicianship a rewarding and respected career path, one that offers professional fulfilment, a strong sense of purpose and the opportunity to make a lasting contribution to society.
As this report reaches over 550,000 global decision-makers via the Bloomberg Terminal, what final message would you like to share regarding Korea’s openness to global partnership and its future in healthcare innovation?
Modern Korea has overcome tremendous hardship in the past, from the aftermath of the Second World War through the Korean War and its recovery, while preserving democracy and achieving what is widely known as the Miracle on the Han River.
Korea is the only country in the world to have transformed itself from an aid recipient to a global pivotal state that now provides assistance to others. The economic and scientific capabilities built up over the course of that transformation now provide a strong foundation for Korea’s healthcare innovation. I also believe that the spirit of fearlessness in face of challenges and adaptability to change is deeply embedded in our national character and has consistently underpinned our success.
Korea is committed to sharing that experience and capability with the international community. Some of our commitments include: the Global Training Hub for Biomanufacturing, which we are operating through close partnership with the WHO, a program which supports the training and reinforcing of biomanufacturing workforce in the low- and middle-income countries.
We also continue expanding the Dr. Lee Jong-wook Fellowship Programme, established in 2006, alongside our broader healthcare ODA efforts, to help reduce global health disparities. These efforts are yielding tangible results and earning international recognition. Last year, the number of foreign patients visiting Korea for medical treatments reached a record 2.01 million, surpassing two million for the first time. This growth is continuing to double every year since the pandemic, cementing Korea’s position as a leading medical tourism destination in Asia.
In June, Newsweek’s Asia-Pacific hospital rankings placed Korean hospitals first in nine of ten specialties assessed. Together with the continued global rise of K-Culture, this points to a broader trend: growing international trust in Korea’s healthcare capabilities and greater recognition of what the country and its people have achieved.
Looking ahead, Korea aims to be more than a country with advanced medical technology. We aspire to become the world’s most trusted health partner, contributing to protecting the right to health for all people and to building a safer, more equitable and resilient global health security system. The Korean Ministry of Health and Welfare will continue to fulfill its role in shaping the policies that support that ambition – building a healthcare system that is the best and “irreplaceable”.
