South Korea Trade Mission - June 18-20, 2012

The International Trade and Diplomacy Office (ITDO) would like to inform you of an exciting, upcoming opportunity to participate in a state-led Trade Mission to South Korea. Whether you are already conducting business there, or are considering it, this will be a great opportunity for your company to utilize valuable state and federal government resources, which will help you to expand your business into Korea's thriving marketplace.

What makes Korea especially exciting is the recent ratification of a Free Trade Agreement between the United States and South Korea. This agreement offers Utah companies groundbreaking competitive advantages. A vast majority of Korean duties and tariffs have been either immediately eliminated or are scheduled to be phased out over the next several years. As a result, multi-national companies throughout the world are racing to penetrate this market and the International Trade & Diplomacy Office is in a distinct position to help Utah companies be at the forefront.

Recently implemented trade agreements have benefited Utah. For example, since the U.S.-Australia trade agreement entry into force in 2005, Utah’s exports to Australia have grown by 196 percent. Since the U.S.-Singapore trade agreement entry into force in 2004, Utah’s exports to Singapore have grown by 1265 percent. KORUS can similarly benefit Utah.

Objectives:

Includes a variety of one-on-one business matchmaking meetings, networking opportunities, among other valuable activities.

Matchmaking:

One-on-one matchmaking meetings with pre-screened distributors, agents, joint-venture partners etc.-- depending on your needs. This will be a unique opportunity as we have received funding that will allow us to subsidize qualified companies with Gold Key Matchmaking Services (GKS) as offered by the U.S. Commercial Service. Normally such services cost approximately $700 per day depending on the company size. GKS are unique from case to case and its objectives pre-set by each individual company. Each company utilizing GKS will be provided with extensive information about their matchmaking services during April and May.

Our above mentioned subsidization awards will be provided on a first-come, first-served basis, so please complete and submit a trade mission application as soon as possible if you’re interested in taking advantage of this opportunity. This application is non-binding, and is intended to guide our office in helping you determine whether this mission will be valuable to your company, in advance of making a commitment to participate in the mission.

If you or your company are interested in joining ITDO on this mission, please download the below application form, complete and return it to Julian Tippets via email at: jtippets@utah.gov. If you have any additional questions, please contact Julian at 801-538-8640.

Key Dates

April 9 - Biomedical Device Consulting Webinar
April 13 - Application Due to aneuenschwander@utah.gov
April-May - Matchmaking Arranged
May-June - Logistical Coordination (TBA)
June 18-20 Trade Mission

From the U.S. Commercial Service's Doing Business in Korea: 2011 Country Commercial Guide for US Companies:

S. Korea Healthcare Technology and Medical Devices

The Korean medical device market was estimated at USD 3.6 billion in 2010 and is expected to increase to approximately USD 4.0 billion in 2011. According to industry sources, the medical device market is forecast to grow at an average annual rate of 10-15 percent over the next few years.

Korea depends on high end medical devices from the U.S., EU, and Japan to supply about 60 percent of total market demand. In 2010, total imports of medical devices were estimated at USD 2.1 billion, with US imports, estimated to be USD 839.3 million, representing approximately 40 percent of the import market. Some factors favoring the use of imported advanced medical equipment and devices is the growing elderly population and the swelling ranks of Korean doctors educated in the US and Europe who are accustomed to such devices.

The importation of medical devices requires the assignment of an importer or representative based in Korea to manage medical device approval and to ensure regulatory compliance. As part of the pre-market approval requirements, the Government of Korea requires testing reports of imported devices for safety and efficacy. In addition to the medical device approvals, companies must also negotiate pricing terms with the Korean Health Insurance Review & Assessment Service (HIRA). Current issues for medical device industry in Korea include reimbursement price re-evaluation and healthcare technology assessment system for medical devices. The Commercial Section at the US Embassy works closely with associations including AdvaMed and the
US Chamber of Commerce in Korea to ensure US interests are maintained in the medical device industry.

Sub-Sector Best Prospects

• Stent
• Orthopedic implant (Knee)
• Soft contact lens
• CT systems
• Dialyzer
• MRI
• Accelerator system collimator electron applicator
• Ophthalmic lens
• Staple
• Surgical instruments
• Ultrasound imaging system, etc.

One of the potential areas for U.S.-Korea cooperation in the healthcare technology sector is in the area of clinical trials. Korea seeks to become a leader in providing clinical trials for both medical devices and pharmaceuticals. To attract foreign clinical trials to Korea, the Korean government supports improving the caliber of hospitals, hi end medical technology, deregulation, etc.

The Korean government also plans to construct world-class hospitals with 350-600 beds in the Incheon Free Economic Zone (IFEZ). The first hospital at the FEZ is targeted to open in 2016. Since this is the first time that Korea has invited foreign capital participation in healthcare, the development of the Incheon FEZ would provide a good export opportunity for US suppliers of high-end medical products. (Note: Relevant regulations have not been passed at the Korea’s National Assembly yet, and opening of the hospitals might be delayed.)