Laying the Groundwork to Enter Chinese Healthcare Market

 

-Severance-Qingdao Hospital to Be Established

-First Attempt to Build General Hospital Abroad

 

 

 

As the healthcare field becomes increasingly global, the South Korean healthcare market has sought to expand operations beyond the nation’s borders. On August 22, the groundbreaking ceremony for Severance-Qingdao Hospital in China was held, with representatives from the Yonsei University Health System (YUHS) and the Hiking Group in attendance.

 

YUHS President and CEO Do-Heum Yoon said at the event: “We are proud to be part of increasing South Korea-China cooperation in the medical field, and we hope to provide high quality medical services through the Severance-Qingdao Hospital.” He added: “As Severance-Qingdao Hospital is launched, we are also planning to contribute to the development of the Qingdao and Shandong regions as medical hubs for high quality research and healthcare service.”

 

A memorandum of understanding between YUHS and the Hiking Group was signed in August 2014; in March of this year, the two sides signed a business agreement to establish Severance-Qingdao Hospital. In the first stage of the project, the hospital will be equipped with 1,000 beds, a number that is expected to grow to around 3,000. The hospital’s design will incorporate the patient-friendly environment of Severance Hospital’s renowned clinical system, and the hospital will eventually run several specialized medical centers and clinics to meet the needs of Chinese patients.

 

YUHS and the Hiking Group will invest a total of 300 billion won to complete the first phase of construction, with each side having a 50% stake in the hospital. Officials from YUHS believe that the Severance brand will be significantly enhanced by being the first Korean general hospital in China, while also allowing it

to generate greater revenues.

 

The Hiking Group is a prominent company in Shandong, generating 16.4 billion yuan (2.9 trillion won) in profits each year, and it operates in the areas of financial investment, real estate development, and businesses catering to senior citizens. In the past, the group has been appointed by the Shandong government to promote its business plans. In 2013, the Hiking Group was ranked 60th among Chinese companies in the service sector.