Comprehensive Guide to Korea Company Setup for Foreign Patient Attraction Businesses

Korea has rapidly become a leading destination for medical tourism, drawing a record number of international patients who seek top-notch healthcare services. If you're considering entering this lucrative market, understanding the steps to set up a foreign patient attraction business in Korea is crucial. This guide will walk you through the essential requirements and regulations to help you navigate the process successfully.

The Booming Medical Tourism Industry in Korea

Korea's medical tourism industry is growing at an unprecedented rate. According to the Ministry of Health and Welfare, a "foreign patient" is defined as a non-resident receiving medical treatment in Korea who is not covered under the national health insurance. In 2023, Korea attracted a record-breaking 606,000 medical tourists—a staggering 144.2% increase from 248,000 in 2022. Since Korean medical institutions were first authorized to accept foreign patients in 2009, the industry has seen an average annual growth rate of 23.5%, peaking at 497,000 patients before the COVID-19 pandemic caused a temporary decline.

Patients from 198 countries sought medical treatment in Korea in 2023, with Japan, China, the U.S., Thailand, and Mongolia leading the numbers. Taiwan and Japan saw remarkable growth in patient numbers, increasing by 866.7% and 762.8%, respectively. The majority of these patients visited for dermatological treatments (35.2%), followed by plastic surgery (16.8%), internal medicine (13.4%), and health checkups (7.4%). Seoul remains the primary destination, attracting 88.9% of the foreign patients. The Ministry of Health and Welfare aims to further increase the number of foreign patients to 700,000 by 2027, expanding the number of designated agencies for electronic visa issuance to 50 by the end of 2023. These agencies will streamline the visa process in collaboration with the Ministry of Justice, eliminating the need for visits to embassies or consulates.

Setting Up a Foreign Patient Attraction Business in Korea

To legally operate a foreign patient attraction business in Korea, you must comply with the "Act on Support for Overseas Expansion of Healthcare System and Attraction of International Patients" (Medical Overseas Expansion Act). This includes registering with the appropriate provincial or municipal government before beginning operations. Non-compliance can lead to severe penalties, including imprisonment of up to 3 years or fines up to 30 million KRW.

Registration under Article 2, Section 3 of the Medical Overseas Expansion Act permits your business to:

1. Arrange and facilitate medical appointments and contracts, or act as an agent for these services.
2. Provide medical information to foreign patients.
3. Offer convenience services related to medical care, such as transportation and accommodation guidance.

This registration is a formal acknowledgment of your business's role in promoting the use of Korean medical institutions by foreign patients.

Key Requirements for Registration

To establish a foreign patient attraction business in Korea, the following requirements must be met:

• Office Space: Secure a physical office within Korea.
• Capital: Maintain a minimum capital of 100 million KRW.
• Insurance: Obtain specific insurance coverage for licensing and permits necessary for operating a foreign patient attraction business.

Essential Documents for Registration

You'll need to submit the following documents during the registration process:

• Application Form: Complete the application form for foreign patient attraction business registration.
• Business Registration Certificate: Provide proof of your business registration.
• Surety Bond Insurance Policy: Submit a copy of your insurance policy.
• **Proof of Capital:**For Individuals: A bank balance certificate.For Corporations: A corporate registry extract.
• Office Lease Contract: Provide a copy of your office lease agreement.
• Business Plan: Include a detailed business plan outlining your objectives, main activities, target revenue, and other relevant details.
• Articles of Incorporation/Corporate Registry Extract: Corporate entities must ensure that their business purpose, as indicated in these documents, includes foreign patient attraction (or medical tourism).

Registration Procedure

Here are the steps for completing your registration:

1. Processing Time: Expect the review process to take 20 to 30 days after submission.
2. Processing Agency: The Korea Health Industry Development Institute (KHIDI) handles the application process.
3. Submission Method: Submit your application online through the KHIDI website and follow up with postal mail. It's advisable to seek local professional assistance to ensure a smooth and efficient process.

Conclusion

Korea’s medical tourism sector presents substantial growth opportunities for foreign investors. To successfully enter this booming market, understanding and adhering to the Foreign Patient Attraction Business Registration process is vital.

For expert guidance on meeting registration requirements and establishing your business in Korea's thriving medical tourism industry, feel free to contact us.