The Korean government has ramped up pressure on electronic medical record (EMR) companies that are holding back the expansion of "Silson24," a service that allows paperless submission of indemnity insurance claims. Authorities believe some EMR providers are slowing the rollout by demanding high fees and additional support. Officials have compared the situation to the "valley restoration project" that President Lee Jae-myung pushed during his tenure as Gyeonggi Province governor.
"The EMR companies' claims to vested interests are excessive," a senior government official said. "The Silson24 expansion project is similar to the valley restoration project." The official added, "We will closely examine whether EMR firms are enjoying an oligopolistic position."
Kwon Dae-young, Vice Chairman of the Financial Services Commission, also directly targeted the EMR industry at a Silson24 review meeting held on the 11th. "It is highly abnormal that a system introduced 14 years after the 2009 recommendation by the Anti-Corruption and Civil Rights Commission remains at a connection rate of 29 percent even six months after its launch," Kwon said. He added, "The government will directly normalize the collective non-participation of some EMR companies that have ignored public convenience." The Fair Trade Commission (FTC) also attended the meeting, where the possibility of a collusion investigation was mentioned.
The fact that a senior government official reiterated the hard-line message immediately after the FSC vice chairman's public warning suggests authorities view the issue as highly serious. President Lee is reportedly paying close attention to the rollout of Silson24. "Companies should take note that the FTC was mentioned at the meeting," the senior government official said.
EMR companies provide computerized systems that manage medical records and health information for hospital and clinic patients. Their cooperation is essential for Silson24 to take root. With GC MediAI, an EMR affiliate of Green Cross considered the top player in the industry, expressing its intention to join Silson24 the previous day, the connection rate is expected to rise to around 52 percent next month. Still, authorities believe the pace of expansion remains insufficient.
The main concern is the limited participation of the EMR sector at the clinic level. Aegis Healthcare and Bit Computer, ranked second and third in the clinic-level EMR market, have yet to join Silson24. This stands in contrast to major pharmacy and dental EMR providers such as the Korea Pharmaceutical Information Center, Osstem Implant and Dentweb, which have already joined the service.
Given their market share, the impact of these firms' non-participation is significant. Aegis Healthcare is estimated to hold about 17.7 percent of the market with roughly 6,600 clinic-level medical institutions as clients. Bit Computer, with about 3,600 clinic-level clients, is estimated to hold roughly 9.7 percent. Combined, the two companies account for about 27 percent of the clinic-level EMR market.
EMR companies that have not joined Silson24 are reportedly demanding additional fees and financial support. In the financial industry, complaints are mounting that these demands are excessive, as insurers already shoulder considerable costs. "Insurers had agreed from the start to cover all the computing costs," a financial industry source said. Insurance companies invested 118.4 billion won in building Silson24 in 2024 and bear 24.27 billion won in annual operating costs.
