A study on the improvement for the classification of Korean Medicine industry

Eunhye Hyun; Ji-Eun Park; Yooseon Park; Byungmook Lim; Hyun, Eunhye; Park, Ji-Eun; Park, Yooseon; Lim, Byungmook

doi:10.13048/jkm.24038

JKM > Volume 45(3); 2024 > Article

Hyun, Park, Park, and Lim: A study on the improvement for the classification of Korean Medicine industry

Original Article

The Journal of Korean Medicine 2024; 45(3): 65-75.

Published online: September 1, 2024

DOI: https://doi.org/10.13048/jkm.24038

A study on the improvement for the classification of Korean Medicine industry

Eunhye Hyun¹

, Ji-Eun Park²

, Yooseon Park³

, Byungmook Lim⁴^{, *}

¹Institute of Health Policy and Management, Seoul National University Medical Research Center

²Center for Global Collaboration, Korea Institute of Oriental Medicine

³Policy Development Center, Development of Korean Medicine Policy, National Institute for Korean Medicine Development

⁴Division of Humanities and Social Medicine, School of Korean Medicine, Pusan National University

Correspondence to: Byungmook Lim, Division of Humanities and Social Medicine, School of Korean Medicine, Pusan National University 49, Busandaehak-ro, Mulgeum-eup, Yangsan, Republic of Korea, Tel: +82-51-510-8403, Fax: +82-51-510-8446, E-mail: limb@pusan.ac.kr

Received June 29, 2024 Revised July 31, 2024 Accepted August 19, 2024

Abstract

Objectives

This study aims to develop a revised classification system of the Korean Medicine (KM) industry that is practically feasible, ultimately laying the groundwork for the KM industry’s development.

Methods

The draft of classification structure and categories were established through review of literature on existing classification systems related to KM or industry. The experts who affiliated to representative organizations on KM industry were invited to conduct reviews for enhancing the draft’s practical validity and usability. The review process was iterated until consensus was achieved among the experts, ensuring the revised classification was comprehensive and robust.

Results

Three drafts were created in total, and the final revised classification system consisted of the ‘KM industry’ and the ‘KM-related industry’ (indirectly related or supportive of the KM industry). The ‘KM industry’ includes KM medicaments, KM medical instruments and appliances, and KM healthcare service. The ‘KM-related industry’ includes KM research, KM administration, KM education, and KM organization. Two key points emerged from the open feedback: the necessity of establishing new sectors within the KM industry and the need for further research on methods to link these new sectors with existing statistical data.

Conclusions

The revised classification system of the KM industry developed in this study can serve as an important foundational resource for policymakers, researchers, and industry practitioners in the relevant field, supporting their research and policy development.

Keywords: Korean Medicine, Korean Medicine industry, Korean Medicine industry classification

Fig. 1

Flow chart of the development for Korean Medicine industry classification system

Table 1

Revised classification system of Korean Medicine industry

KM industry
	Section	Division	Group	Class	Sub-class
Korean Medicine medicament	Agriculture, forestry and fishing	Agriculture	Growing of crops	Growing of other crops	Growing of medical plants^*
	Manufacturing	Manufacture of pharmaceuticals, medicinal chemical and botanical products	Manufacture of medicaments	Manufacture of finished medicaments	Manufacture of finished medicaments
	Manufacturing		Manufacture of medicaments	Manufacture of herb medicaments	Manufacture of herb medicaments
	Wholesale and retail trade	Retail trade, except motor vehicles and motorcycles	Retail sale in other goods in specialized stores	Retail sale of pharmaceuticals, medical equipment, cosmetics and perfumery	Retail sale of Korean Medicine pharmaceutical goods^*
Korean Medicine medical instruments and appliance	Manufacturing	Manufacture of medical, precision and optical instruments, watches and clocks	Manufacture of medical and dental instruments and supplies	Manufacture of other medical and surgical equipment and orthopedic appliances	Manufacture of Korean Medicine medical instruments and appliances^*
Korean Medicine healthcare service	Human health and social work activities	Human health activities	Hospitals activities	Hospitals activities	Intermediate care hospital
			Hospitals activities	Hospitals activities	Korean Medicine hospitals
			Medical and dental practice activities	Medical and dental practice activities	Korean Medicine clinics
			Public health centers	Public health centers	Public health centers
KM-related industry (indirectly related to or supportive of the Korean Medicine industry)
	Section	Division	Group	Class	Sub-class
Korean Medicine research	Professional, scientific and technical activities	Research and development	Research and experimental development on natural sciences and engineering	Research and experimental development on natural sciences	Research and experimental development on Korean Medicine^*
Korean Medicine administration	Public administration and defence; compulsory social security	Public administration and defence; compulsory social security	Administration of industrial and social policy of community	Regulation of the activities of providing health care, education, cultural services and other social services, excluding social security	Regulation of the activities of health care and welfare affairs on Korean Medicine^*
Korean Medicine education	Education	Education	Higher education	Higher education	Universities
Korean Medicine education	Education	Education	Higher education	Higher education	Graduate schools
Korean Medicine organization	Membership organizations, repair and other personal services	Membership organizations	Business, employers and professional membership organizations	Business and employers membership organizations	Business and employers membership organizations
Korean Medicine organization		Membership organizations		Professional membership organizations	Professional membership organizations

Note: The Korean and English names used in this table follow the terminology of the 10th edition of the Korean Standard Industrial Classification. However, the terms for ‘Korean Medicine clinics’ and ‘Korean Medicine hospitals’ have been modified from the original terms: ‘Oriental medical clinics’ and ‘Oriental medical hospitals’.

* Based on the 10th edition of the Korean Standard Industrial Classification, items requiring new establishment

Appendices

부록 1

1차 개정안

부록 2

2차 개정안

부록 3

3차 개정안

부록 4

최종 개정안 (Table 1의 국문본)

부록 5

한의약산업 관련 세세분류 신설 예: 약용작물 재배업, 한약 소매업

1. 약용작물 재배업

2. 한약 소매업

참고문헌

1. Korea Health Industry Development Institute. White paper of healthcare industry. 2004–2014. [cited 2023 Dec 10]; Available from: https://www.khidi.or.kr/board?menuId=MENU00086

2. Korea Institute of Oriental Medicine. Korean Medicine industry survey. 2014–2021. [cited 2023 Dec 15]; Available from: https://policy.kiom.re.kr/sub0201

3. Korea Ministry of Government Legislation. Interpretation and review process of ‘Act on the Promotion of Korean Medicine and Pharmaceuticals’. 2009. [cited 2024 June 8]; Available from: https://www.moleg.go.kr/mpbleg/mpblegInfo.mo?mid=a10402020000&mpb_leg_pst_seq=130690

4. Ministry of Health and Welfare. The 4th comprehensive plan for Korean Medicine development (2021~2025). [cited 2024 May 3]; Available from: https://www.mohw.go.kr/board.es?mid=a10107010000&bid=0042&act=view&list_no=372521&tag=&cg_code=&list_depth=1

5. Ministry of Health and Welfare. Press release: Ministry of Health and Welfare, discussion on measures to promote the Korean Medicine industry and official development assistance. 2023. [cited 2024 Mar 15]; Available from: https://www.mohw.go.kr/board.es?mid=a10503010100&bid=0027&act=view&list_no=1479196&tag=&nPage=26

6. Korea Health Industry Development Institute. Establishment of healthcare industry classification system and utilization of linked statistics. 2013. [cited 2024 Feb 10]; Available from: https://www.khidi.or.kr/board/view?pageNum=1&rowCnt=10&menuId=MENU00085&maxIndex=00001007919998&minIndex=000&schType=0&schText=&categoryId=&continent=&country=&upDown=0&boardStyle=&no1=5&linkId=100793

7. Do SR. Toward the improvements in health care utilization statistics. Health and welfare policy forum;(2012). 19138-48.

8. Shin HK. A research on the Korean medicine industry of define and classification. Korean Journal of Oriental Medicine;(2004). 10(1):97-105.

9. Seo JK. Analyses on the economic effects of investment in health industry and Korean Medicine. Review of business & economics;(2009). 22(5):2457-2475.

10. Research Institute of Korean Medicine Policy. White paper of Korean Medicine. 2009. The Association of Korean Medicine.

11. Korea Statistics promotion institute. Establishment of methodology for market research in Korean Medicine;(2012.

12. National Institute for Korean Medicine Development. Korean Medicine industry statistical collection. 2019–2023. [cited 2024 April 10]; Available from: https://nikom.or.kr/nikom/board/index.do?menu_idx=38&manage_idx=53

13. Minjok medicine news. Efforts to secure trust of Korean Medicine doctors in external herbal medicine preparation and concurrent public promotion of Korean Medicinal products. 2022. 12. 8. [cited 2024 Feb 10]; Available from: https://www.mjmedi.com/news/articleView.html?idxno=5582

14. Statistics Korea. Press release: Expansion of ‘Industrial Special Classification’ development supports new industry growth. 2024. 1:17. [cited 2024 July 29]; Available from: https://www.kostat.go.kr/board.es?mid=a10301010000&bid=246&list_no=429099&act=view&mainXml=Y

15. Korea Health Industry Development Institute. 2020 Survey on the status of the biohealth industry. 2021. [cited 2024 July 29]; Available from:: https://www.khidi.or.kr/board/view?pageNum=2&rowCnt=10&no1=13&linkId=48874312&menuId=MENU00085&maxIndex=00489128579998&minIndex=00001005409998&schType=1&schText=%EB%B0%94%EC%9D%B4%EC%98%A4&schStartDate=&schEndDate=&boardStyle=&categoryId=&continent=&country=

16. Statistics Korea. Korea Standard Industrial Classification. 10th Edition. [cited 2023 Dec 15]; Available from: http://kssc.kostat.go.kr/ksscNew_web/kssc/common/CommonBoardList.do?gubun=1&strCategoryNameCode=001&strBbsId=ksictnr&categoryMenu=011

17. Lim B. The strategy for discovery and industrial promotion of Korean Medicine products. Research report. Pusan national university;(2011.

18. Statistics Korea. Manual of Korea Standard Industrial Classification. 10th Edition. [cited 2023 Dec 15]; Available from: http://kssc.kostat.go.kr/ksscNew_web/kssc/common/CommonBoardList.do?gubun=1&strCategoryNameCode=001&strBbsId=ksictnr&categoryMenu=011

19. National Tax Service. Manual of National Tax Service Industry Classification. 2020. [cited 2023 Dec 15]; Available from: https://www.nts.go.kr/nts/na/ntt/selectNttList.do?mi=135775&bbsId=1143&adit1Column=%EB%B6%80%EA%B0%80%EA%B0%80%EC%B9%98%EC%84%B8/%EC%86%8C%EB%93%9D%EC%84%B8

20. Statistics Korea. Press release: Revision and promulgation of the Korean Standard Industrial Classification. 2017. 1. 13. [cited 2023 Dec 15]; Available from: http://kostat.go.kr/portal/korea/kor_nw/1/1/index.board?bmode=read&bSeq=&aSeq=358710&pageNo=1&rowNum=10&navCount=10&currPg=&sTarget=title&sTxt=