Ten years have passed since the ‘Jeju Special Act’ to make Jeju a free international city, like Hong Kong and Singapore, became law in November 2001 and Jeju Free International City Development Center (JDC) was founded the following year. JDC has designed six projects to build a foundation for Jeju Free International City. Among them, the Jeju Healthcare Town project has begun in earnest.
With public spending for healthcare rising around the world, 7 million people are travelling annually to receive the best medical services at a reasonable cost.
According to McKinsey, a leading international consultancy, the global medical tourism market, which has grown at an annual average rate of 25% since 2000, is expected to be valued at $100 billion, or approximately KRW150 trillion, in 2012. As its market value has expanded rapidly, the medical tourism industry has drawn attention as one of the more promising sectors.
Korean medical tourism industry sources said that 60,201 overseas travelers visited Korea for medical purposes, pumping up profits by KRW54.7 billion, in 2009 when the Revised Medical Service Act was passed to permit service providers to attract medical travelers. The number increased by 36% to 81,789 in 2010 – 32.4% from the US, 19.4% from China and 16.8% from Japan, which led to KRW103.2 billion in profits, up 88.6% from a year earlier.
The Ministry of Health and Welfare signed an agreement with the Abu Dhabi Health Authority in the United Arab Emirates in November 2011 to help Korea’s four medical institutions entice patients. Abu Dhabi provides public funds to 3,000 patients annually to seek appropriate treatment overseas. The agreement is expected to fuel a boom in Korea’s top-quality medical services in the Middle East.
To build on this momentum, JDC has stepped up efforts to make Jeju, home to more than 1 million overseas visitors in 2011, a global hub for medical tourism based on its Jeju Healthcare Town project.
JDC is a state-owned company established under the Ministry of Land, Transport and Maritime Affairs to turn Jeju into a free international city, like Hong Kong and Singapore. It is developing six projects - Jeju Global Education City, Jeju Healthcare Town, Jeju Science Park, Resort-type Residential Complex, Myths and History Theme Park and Seogwipo Tourism Port – to achieve this goal.
Recently, several Chinese real estate firms have expressed their intention to join the Jeju Healthcare Town project, helping it proceed smoothly. This brightens the future of Jeju as the Asian hub for medical tourism.
Jeju was selected by Chinese people as the most favorite tourist attraction. Legend says that Seobok cast anchor off Jeju’s shore close to Jeongbang Waterfall and fetched magical herbs of eternal youth from Mount Youngju (later known as Mt. Halla) to fulfill the wish of Emperor Qin Shi Huang of China’s Qin Dynasty who feared death and sought a way to live forever without aging. The age-old connection between China and Jeju seems to play a part in attracting investment from China’s leading real estate firms.
JDC selected ‘Seowoo–Zhong Da Real Estate (hereafter Seowoo) consortium’ as the preferred bidder for the Jeju Healthcare Town project on December 7. The Seowoo consortium, which consists of Neulproon Medical Foundation (Bobath Memorial Hospital), Seowoo Co., Ltd., Zhong Da Real Estate and ADI Health Care Co., Ltd. plans to invest KRW467 billion in the project having a site area of 449,490 square meters. Major facilities to be located in the Town include medical check-up center & clinic, rehabilitation center, sanatorium, health community, international resort and other commercial facilities to make the Town a world-class healthcare resort by integrating the concepts of medical service, health, resort and tourism and providing differentiated services.
Zhong Da Real Estate, a real estate firm in Kunshan, Jiangsu, China, will be responsible for overseas marketing, while Neulproon Medical Foundation will become the main operator of healthcare facilities to be set up at the resort complex. ADI Health Care Co., Ltd., a total healthcare company, will provide solutions necessary for building and operating healthcare facilities.
Following the meeting, JDC will facilitate negotiations with the Seowoo consortium to produce positive results for the project within the shortest time. In specifics, it plans to reach a short form agreement (SFA) within the next three months and an official agreement within the next six months with the aim of establishing a joint corporation this year.
JDC signed a memorandum of understanding (MOU) with Greenland Group, based in Shanghai, China, on December 23, 2011. The MOU states that Greenland Group will exclusively build facilities at the Wellness Park and R&D Park within Jeju Healthcare Town, while JDC will provide administrative, PR and marketing support in moving the project forward.
