South Korea launches $600 million initiative to speed medical device innovation

South Korea’s medical device industry is poised for faster growth after the government announced a national investment plan of more than 900 billion Korean won ($622.1 million) to advance next-generation technologies.

The Ministry of Trade, Industry and Energy said the program is being developed as a pan-government collaboration that will prioritize technologies with strong clinical and commercial potential. The effort focuses on areas such as AI-based diagnostic tools, medical robotics and next-generation implant systems as the country seeks to expand its global competitiveness.

The announcement aligns with expectations for the domestic medical device market, which is projected to grow at a 5% compound annual growth rate between 2024 and 2034, according to GlobalData. The firm reports that South Korea is expected to account for about 7% of the Asia-Pacific medical device market in 2025, with large multinationals — including Siemens Healthineers, GE HealthCare, Osstem Implant, Medtronic, Abbott and Stryker — maintaining a substantial presence.

“South Korea has long been recognized for its manufacturing strength in medical devices, particularly in consumables and diagnostic equipment,” said Divya Soni, medical devices analyst at GlobalData. “However, the government’s targeted investment in advanced categories could mark a turning point, helping domestic manufacturers move up the value chain. By supporting R&D, clinical validation, and regulatory acceleration, the new initiative may position South Korea to compete in premium MedTech segments traditionally dominated by global players.”

Officials expect the program to streamline the development and commercialization of technology-driven medical devices by expanding resources for companies working on high-value products. The plan also aims to elevate South Korea’s status in international markets by encouraging the creation of export-ready innovations.

“By investing in transformative technologies and enabling smoother regulatory and commercialization pathways, South Korea is taking a strategic step toward redefining its role in the global medical device landscape,” Soni said. “The initiative underscores South Korea’s long-term vision to advance precision medicine and innovation-driven healthcare delivery, while strengthening industrial competitiveness and establishing the country as a regional leader in advanced medical technologies across the APAC region.”