[Bio Story]③"AI Medical Devices Competing with Data: Korea Has a Winning Chance"

Interview with Kim Yongwook, Director of Gangnam Severance Hospital ③

New Drugs and Advanced Regenerative Medicine Require a Long-Term Approach
"Direct Competition with China Is Disadvantageous"

"Large Hospitals Must Serve as Cluster Hubs

"It is difficult to surpass China in terms of speed and scale. However, AI medical devices that compete using medical data are different. This is an area where we can have a competitive edge."

The government has set a goal to elevate Korea from a 'follower' to a 'first mover' through its Advanced Bio Initiative. Kim Yongwook, Director of Gangnam Severance Hospital, identified AI medical devices and digital therapeutics (DTx) as areas where Korea could lead. He explained that these fields offer high accessibility because the scale of infrastructure required for initial investment is relatively small.

Kim Yongwook, Director of Gangnam Severance Hospital, is responding in an interview with The Asia Business Daily. Photo by Dongju Yoon

Director Kim explained the difference by dividing it into 'wet labs,' which conduct animal experiments, and 'dry labs,' which handle data. Wet labs, which are essential for new drug development, require massive facility investments, making it difficult even for the so-called 'Big 5' hospitals to be fully equipped. In contrast, dry lab fields such as AI medical devices are accessible with just data and ideas, without the need for advanced facilities. Director Kim said, "Digital technology can be utilized by anyone regardless of advanced infrastructure, and Korea's rapid spread of IT devices is an area where we can hold a competitive advantage."

As great as the potential is, there are also clear barriers in reality. Digital therapeutics (DTx), which forms a core pillar of digital bio alongside AI medical devices, is slow to commercialize. Digital therapeutics for insomnia and cognitive impairment training have only just begun to be prescribed at some major hospitals, but their penetration remains at a nascent stage. Director Kim identified low patient compliance, the cumbersome process for physicians to prescribe, and a lack of awareness as key barriers to broader adoption. He explained, "Most digital therapeutics are applications (apps), and many patients are reluctant to use paid services." The sentiment that one must take medicine to feel treated is itself a significant obstacle.

He pointed out that global innovative new drugs and advanced regenerative medicine are fields that require a longer-term chase. This is because they require not only tremendous capital but also a long-accumulated base of fundamental scientific data and a global clinical network. Even if AI can quickly identify candidate substances, the hurdles of Phase 1 to 3 clinical trials—which are the most time-consuming and expensive—remain unchanged. In the field of new drugs, he particularly noted the rise of China as a variable to watch. Director Kim said, "Until four or five years ago, the medical community somewhat underestimated China, but now the scale of clinical experience is completely different. There are even cases where U.S. Food and Drug Administration (FDA) approval is obtained through clinical trials conducted in China or India." Given the widening gap in clinical scale and costs, he diagnosed that Korea needs a strategy of first nurturing areas where its strengths are clear, rather than direct competition.

Yongwook Kim, Director of Gangnam Severance Hospital, is responding in an interview with this publication. Photo by Dongju Yoon

Director Kim pointed out that regardless of the field, research outcomes can only reach the market if they first overcome institutional barriers. These include a system where physician-scientists are evaluated solely based on clinical performance, restrictions on medical data sharing due to information protection regulations, and R&D budgets that are interrupted at every stage of the 'relay race.' He said, "Basic research is handled by the Ministry of Science and ICT, clinical research by the Ministry of Health and Welfare, and commercialization by the Ministry of Trade, Industry and Energy, so support is cut off every time you move to the next stage."

He also highlighted human resources as a crucial issue underpinning the industry. The shortage rate of skilled workers in the bio sector exceeds even that of semiconductors, and the situation is even more severe in non-metropolitan areas. Director Kim pointed out that Korea's bio clusters are divided into central government-led clusters like Daedeok, Osong, Daegu, and Iksan, and local government-led clusters like Songdo, Hongneung, and Pangyo, saying, "It is questionable whether skilled professionals will move to provincial areas." After the previous administration's medical policy disputes, professors from non-metropolitan areas relocated to the capital region, leading to a vicious cycle of medical and research gaps outside the capital. He diagnosed, "The hollowing out of regional areas is a difficult problem to solve in any sector," and stressed that attracting talent will be difficult without strong incentives such as tax and financial support.

Starting with Institutional Links Between Research and Market..."Hospitals as Cluster Hubs"

As a starting point to fill these gaps, Director Kim emphasized the role of hospitals. Large hospitals must become 'hubs' within clusters, moving beyond merely being treatment spaces. They should serve as open innovation testbeds that verify ideas through clinical trials, business convergence bases that connect with startups and IT ventures, and technology commercialization outposts that turn fundamental technology into high value-added products. Referring to the hub role played by Massachusetts General Hospital within the Boston cluster in the United States, he said, "Whether it's new drugs or devices, testing and certification ultimately can only be done at hospitals."

Director Kim defined the core task for his tenure on the Innovation Committee as "establishing an end-to-end fast track that solves everything from R&D investment and regulatory reform to market entry all at once." He said the essence of the Innovation Committee is to set a practical precedent for breaking down silos between ministries. The key, he explained, is how broadly the ministries in charge of licensing and budgeting can cooperate. "It's not easy, but that's what it takes to succeed," he emphasized.

This content was produced with the assistance of AI translation services.