Market Trends of South Korea Infrastructure Industry
This section covers the major market trends shaping the South Korea Infrastructure Sector Market according to our research experts:
Investment on transportation infrastructure driving the market
To facilitate the early operation of the high-tech future mobility network, the country intends to overhaul the public transportation system by 2024. South Korea hopes that by 2035, half of all new cars will be fully automated and that traffic-related deaths will be reduced to under 1000 per year. Another important goal is for South Korea to release a Level 3 autonomous car by the end of 2022, making it the third country in the world after Germany and Japan. Autonomous buses will be available on public roads by 2025, and cars will be available by 2027. To accommodate Level 4 automation, the country will also change car insurance, driver's license, and traffic laws. Real-time communication infrastructure will be built on national roads by 2030.
Transport is an essential component of the economy. It makes daily commutes more convenient, allows us to travel freely to all corners of the country, and allows us to receive parcels and other goods in the comfort of our own homes. The transportation and logistics industries are indeed the pillars that support Korea's economy, and new modes of mobility, such as autonomous vehicles and urban air mobility (UAM), are providing new impetus for future growth. The Ministry of Land, Infrastructure, and Transport will work to innovate the entire transportation sector to bring practical improvements to the public's daily lives.
MOLIT will accelerate key transportation projects such as the Great Train eXpress (GTX), metropolitan/high-speed railways, underground expressways, and the new airport in Gadeokdo to address traffic congestion in metropolises and achieve more balanced national growth. To provide consumer-centric services, public transportation will make an innovative shift. MOLIT intends to increase investment in expanding public transportation services and improving intermodal transfer while updating outdated regulations. Efforts will also be made to improve transportation accessibility for vulnerable groups such as the disabled, the elderly, and those living in remote areas. The transportation industry is currently undergoing a period of rapid mobility transformation.
Increased support of health infrastructure driving the market
Samsung Medical Center in South Korea has been working to become an advanced intelligent hospital, becoming the world's first hospital to achieve the highest stage in the HIMSS Infrastructure Adoption Model. A smart hospital of the future will need three things: mass data communication, multi-species and mass device connectivity, and seamless service convergence. Smart parking, medical, incremental location checks, automated medical payment, smart call centre system, automated medical equipment interface, and logistics innovations through robots are among the key projects it sought to implement through this roadmap.
South Korea has a growing need for medical practice digitization and advanced solutions to support a rapidly ageing population, presenting a USD 5 billion-plus market with significant opportunities for Western technology companies. South Korea, with a track record of transforming startups into successful scaleups, also provides numerous opportunities for firms seeking to become world leaders, as well as those seeking strategic investments and global partners. Gaining regulatory approval in the country also opens doors to other east and southeast Asian markets where Korean firms are well-regarded.
Korea's adoption of EMR systems is significantly higher than the OECD average of 81%, reflecting the country's nearly complete digitisation of patient data, digital storage of clinical images, electronic hospital administration databases, and expanding use of remote sensor technology. The government intends to build smart medical infrastructure based on digital technology, highlighting in its Korean New Deal a goal of establishing 18 smart hospitals by 2025 to allow for real-time patient monitoring, diagnosis, and treatment. This means that hospitals will need to implement HIT solutions to fully digitize their operations, creating significant opportunities for international companies with appropriate technologies.
