This study seeks for de-regulation for the expansion of the medical service industry through the interview of the government authorities, service providers and consumers. It also estimates the economic impact of the de-regulation effort.

The study finds it important to create a new market for domestic medical service industry through de-regulation. It is needed to allow not only simplification of the process of attracting foreign patients but also profit-seeking business expansion, investment by non-medical corporations and partnership between medical practitioners. It also proposes to build a ‘No-regulation Free Investment Zone’ as a way of minimizing the concerns that economic principle will damage the public nature of medical industry.

Since the government’s direct support for operation costs or initial establishment costs has resulted in fiscal burden, it is recommended that the governemt provide financial brokerage service connecting medical corporations and investors. According to the estimation of this study, successful de-regulation create value-added of 5.9 trillion won and about 114,000 jobs in the medical service industry by 2020.