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Press Release Distribution Health Industry Policy Division Feb. 12 2015 Director Person in Charge Hwang Seung-hyun Jeong Young-ki Park Jihye 044-202-2901 Tel. 044-202-2911 044-202-2905 Government to Enhance Foreign Patient Protection - Government unveils ‘Measures to Regulate Cosmetic & Plastic Surgery Market Targeting Medical Tourists’ on Feb. 13th – The Ministry of Health and Welfare (Minister: Moon Hyung-pyo) announced the measures to crack down on illegal brokers and to enhance medical safety for foreigners seeking cosmetic 〮 plastic surgery. - The measures were drafted after a discussion of relevant ministries at the ‘Committee on Medical Export Promotion and Medical Tourist Attraction*’ on Feb. 13th in response to rising concerns about foreign patient protection, as a Chinese woman fell into a coma after going through a procedure at a plastic surgery clinic in Korea. * The meeting was presided over by the Minister of Health and Welfare and attended by officials from the Ministry of Strategy and Finance, the Ministry of Culture and Tourism, the Ministry of Justice, the Ministry of Foreign Affairs, the Ministry of Trade, the Korea Health Industry Development Institute, the Korea Tourism Organization, the Korea Hospital Association, the Korea International Medical Association, and the Korean Association of Plastic Surgeons - Since 2009 when Korea began to attract medical tourists in earnest, the number of medical tourists visiting Korea grew at an annual rate of 36.9 percent, and in particular, the number of foreigners seeking plastic and cosmetic surgery has increased significantly (at 53.5 percent per annum). Exorbitant fees and medical expenses charged through illegal brokers* and ineffective dispute resolution mechanism in case of medical malpractice have raised complaints of foreign patients and undermined the growth potential of foreign-focused medical markets. * Anyone who intends to solicit foreign patients need to be registered with the Ministry of Health and Welfare in pursuant to Article 27.2 of the Medical Act. The ‘Measures to Regulate Cosmetic and Plastic Surgery Market Targeting Medical Tourists,’ announced on Feb. 12th, aim to ensure Korean cosmetic and plastic surgery industry remain trustworthy. - Specifically, the measures are classified into three categories: First, stronger crack down on illegal brokers while promoting authorized medical intermediaries; Second, build a medical information system easily accessible by patients seeking information on medical fee and clinic information in order to improve medical information transparency; and Third, stronger foreign patient protection and enhanced dispute resolution mechanism Detailed measures in each category are as follows: [Stronger Crack Down on Illegal Brokers While Promoting Authorized Medical Intermediaries] - The government will continue to monitor and crack down on illegal brokers to root out illegal practices while minimizing market impact. The government plans to launch the first crackdown on illegal brokers in the first half of this year. The government will focus on whether the medical brokers are registered or not in pursuant to Article 27.2.1 of the Medical Act. (Any violation is subject to a maximum three years in jail or a fine of up to 10 million won.) - The government will introduce a reward system and ban medical clinics from doing business with illegal brokers The legal framework will be drafted in the International Medical Project Support Act (currently pending at the National Assembly) - Medical brokers soliciting foreign patients will receive regular training (every three years) to reinforce professional ethics and strengthen the role of illegal broker report center (the Korea Health Industry Development Institute). [Korean Medical Information System to Ensure Information Transparency] - The government will release the ‘Guidebook on Korean Plastic Surgery Fee’ via various media including online website so that foreign patients seeking plastic surgery in Korea can get accurate information on medical expenses before traveling to Korea. The range of medical fees by plastic surgery type will be offered to protect consumer choice - Medical clinics treating foreign patients will be evaluated on their services offered, and clinics receiving high evaluation will designated as excellent medical organization and be disclosed to the public. Medical clinics treating foreign patients will be evaluated on every aspect including service quality, convenience for foreign patients, the number of professional staff working and infrastructure for patient safety. Information on medical clinics designated as excellent medical organization can be found on a multi-language website of ‘MedicalKorea.’ The government plans to promote and share the information with foreign governments including China. MedicalKorea website: www.medicalkorea.or.kr [Stronger Foreign Patient Protection & Enhanced Dispute Resolution Mechanism] - Medical clinics will be obligated to provide information on the doctor, medical fee, side effects and dispute resolution procedures before performing a medical procedure on a foreign patient, and medical staff will be obligated to wear a name tag or clothes displaying his/her position - Medical clinics agreeing to an automatic medical dispute settlement process will receive various incentives so that the efficiency of a dispute resolution mechanism is enhanced. As a supplementary measure to the dispute resolution mechanism, a Public-Private Consultative Body between Korea and China* will be set up, and voluntary dispute resolution through the Korean Association of Plastic Surgeons will be promoted. *(Korea) Ministry of Health and Welfare, Korean Association of Plastic Surgeons, (China) Chinese Embassy in Korea and relevant agencies - The government will set up ‘International Patients Support Center’ (in 2016) to offer all-around supports, such as medical information, medical receipts, and legal advice. The government also plans to implement staged-measures to ensure medical clinics whose scale is beyond a certain level are insured against medical malpractice. The ‘Committee on Medical Export Promotion and Medical Tourist Attraction` was set up as a follow measure of the ‘Meeting on Promoting the Effects of Foreign Market Penetration’ in December last year, which was presided over by the President and attended by five leading economic organizations in Korea. - The committee aims to facilitate collaboration among related ministries and to concentrate relevant support capabilities. With the Minister of Health and Welfare appointed as the chairperson, the committee is a public- public policy consultation body comprised of vice ministers, heads of public organizations and experts from private sectors involved in medical export promotion and medical tourist attraction. - The committee will be held every quarter to develop comprehensive measures to support medical exports and medical tourist attraction and help medical organizations create success stories. The Ministry of Health and Welfare expressed its expectations saying, “We expect the measures will eradicate illegal brokers who disrupt market order and strengthen foreign patient protection.” - It also noted, “The government will enhance the confidence and transparency of plastic surgery market to attract as much as 500 thousand foreign patients by 2017.” - Furthermore, the Ministry also stated that it will do its best to ensure that the bill on ‘International Medical Project Support Act’ pending at the National Assembly be passed as early as possible as the Act needs to be legislated to provide the legal framework for the implementation of the measures. - End of file