Forecast: Value Added of Healthcare in South Korea

The value added of the healthcare sector in South Korea exhibited a generally positive growth trajectory from 2015 to 2023. Between 2015 and 2019, the sector saw consistent year-on-year increases, peaking at a significant 10.48% growth in 2019. Though 2020 experienced a slight decline of 0.76%, likely due to the impacts of the COVID-19 pandemic, the sector rebounded steadily with moderate growth rates from 2021 to 2023. As of 2023, the sector stood at 74.758 trillion South Korean Wons, reflecting a year-on-year growth of 2.14% and a five-year CAGR of 1.47%. Forecasts for 2024 to 2028 predict a continued, albeit modest, average annual growth rate of 1.63%, culminating in an estimated value of 82.932 trillion South Korean Wons by 2028.

Key future trends to watch for include:

• Technological advancements and their adoption, including telemedicine and AI-driven diagnostics, driving efficiencies and further growth.
• Aging population dynamics influencing healthcare demand and potentially increasing value added.
• Government policies and funding priorities impacting the sector’s expansion.
• Potential impacts of global economic conditions and healthcare challenges on sector performance.