Data Use vs. Privacy: Digital Healthcare Law Sparks Debate in South Korea

South Korea is advancing legislation aimed at fostering its digital healthcare industry through the utilization of anonymized health data. The proposed "Digital Healthcare and Health Information Utilization Support Act" seeks to streamline the use of personal medical records for disease prevention, diagnosis, treatment, and research. The Ministry of Health and Welfare is set to host a public hearing at the National Assembly on Tuesday to discuss the bill, which was introduced by Democratic Party lawmaker Seo Young-seok.

Digital healthcare, which leverages artificial intelligence and other digital technologies with health information, is a rapidly growing sector. It offers continuous monitoring for chronic conditions like diabetes and heart disease, contributing to public health. The global digital healthcare market is projected to reach approximately $366 billion in 2024, with an average annual growth rate of 19.7% expected until 2032, according to a National Assembly Health and Welfare Committee report. South Korea's domestic market is valued at 6.49 trillion won (approximately $4.7 billion).

“

There is a risk of identifying specific individuals during the data aggregation process, even if it has undergone anonymization processing.

However, the bill faces significant opposition due to concerns over privacy. Critics argue that even with anonymization (known as "gamyeong" processing in Korean), there remains a risk of identifying individuals during data aggregation. The Korean Medical Association has voiced worries about potential privacy breaches and the infringement of data subjects' self-determination rights. There are also fears that the bill could allow for the use of anonymized data for commercial purposes, beyond the stated aims of statistical compilation, scientific research, and public record-keeping.

Groups like the Committee for the Prevention of Medical Privatization and Realization of Free Medical Care are planning protests against the bill, citing the potential for insurance companies to use the data to deny coverage or increase premiums for individuals or groups deemed high-risk. They argue that sensitive personal information could be exploited commercially without explicit consent. The Ministry of Health and Welfare maintains it will carefully consider all opinions gathered from the hearing and ongoing consultations with various stakeholders, including industry representatives and patient groups.

“

Private insurance companies could identify individuals with high disease risks based on specific groups or regions, potentially refusing coverage or increasing premiums.