In hospitals across South Korea, vast streams of medical information are generated every day—diagnoses, prescriptions, imaging results, and long-term treatment histories. For years, much of that data served primarily clinical care. Now, policymakers and central bank officials see it as something more: a foundation for the country’s next industrial leap.
South Korea is moving to expand the use of large-scale national healthcare data through artificial intelligence, part of a broader effort to strengthen the competitiveness of its bio and pharmaceutical sectors. Officials say the country’s centralized health insurance system, high adoption of electronic medical records, and advanced digital infrastructure give it a rare advantage in building data-driven medical innovation.
The strategy reflects a growing global shift toward precision medicine and AI-assisted drug development. By analyzing large datasets, researchers can identify disease patterns, predict treatment outcomes, and accelerate the search for new therapies. For South Korea, which is seeking new growth engines amid slower economic expansion, the bio-health sector has been identified as a key future industry alongside artificial intelligence.
Government-backed initiatives are already underway to expand the national health data ecosystem. Plans include building large biological and clinical databases and making them accessible to researchers, universities, and private companies under strict privacy safeguards. One long-term project aims to assemble biological and health information from up to one million people to support research and industrial development.
Investment trends reflect the policy direction. Bio healthcare and AI have attracted a growing share of venture funding and public support, with both sectors seen as central to the country’s deep-tech economy. Startups are also being encouraged to develop AI-based medical applications using hospital data, while public programs help match companies with clinical partners.
The economic logic is clear. AI can reduce the time and cost required for drug discovery, improve diagnostic accuracy, and enable personalized treatment—areas where speed and innovation determine global competitiveness. At the same time, demand for advanced healthcare solutions is rising as South Korea’s population ages and medical needs become more complex.
Yet the approach also raises familiar challenges. Protecting patient privacy, ensuring data security, and building public trust remain critical. Industry experts have also pointed to shortages of specialized talent who can bridge medicine, biotechnology, and data science. Regulators are working to balance wider data access with ethical and legal safeguards, recognizing that public confidence will shape how far the strategy can go.
For the Bank of Korea and other policymakers, the push reflects more than a technological shift. It is part of a broader effort to reposition the economy toward knowledge-intensive industries that can compete globally.
If successful, the country’s vast health databases could become both a research platform and a commercial asset—fueling new treatments, supporting startups, and attracting international collaboration.
The outcome will depend on how effectively South Korea manages the delicate equation between innovation and trust. But the direction is clear: in the next phase of its industrial strategy, data—especially health data—may prove as valuable as any traditional resource.