Chapter 111: Plant-based Pharmaceuticals (4)
“Regulate it by illegalizing it?” Lim Gil-Won asked Hwang Jun-Young.
“Yes. A regular company will basically be able to view health information, which is more sensitive than hospital medical records, so we should be able to regulate it if we challenge it based on the Personal Information and Privacy Act.”
“Kyah!” Baek Joong-Hyuk, the executive vice president, exclaimed. “Sir, you are amazing. An outstanding insight, sir.”
However, Lim Gil-Won frowned. He spoke while maintaining a cool head as much as possible.
“Sir, it won’t be that easy.”
“It won’t work?”
“Originally, you needed a doctor’s permission to receive genetic testing in Korea. But now, the law has been revised so that ordinary companies receive samples from customers and do it arbitrarily.”
“...”
“It won’t be easy to flip it around a year after it has been revised and make it illegal. Ryu Young-Joon proceeded with this business also knowing that as well.”
“Why are they allowing things like that to regular companies?” Baek Joong-Hyuk said, worked up.
“That’s the trend the international diagnostic market is heading in. In the U.S., regular companies have been doing genetic testing for individuals for a long time,” Lim Gil-Won explained. “Of course, it was not against disease-related genes, but to find someone’s ethnic origins as America is a multinational country.”
“...”
“The market for diagnosing diseases is increasing as those companies get bigger. Although, there hasn’t been anyone who did it this big by buying two hundred of those expensive pieces of equipment and doing the Genome Project simultaneously.”
“So is that why Korea also eased the regulations?” Hwang Jun-Young asked.
“That’s right. If we pressure the government now, we would be turning the clock back. Even if the government overturns the regulation, that only buys us time. They will follow the trend eventually.”
The table was filled with silence.
“Then you don’t have any good plans, Director Lim?” Hwang Jun-Young asked.
“Let’s support CEO Ryu instead. We don’t know how that genetic testing business is going to go yet. We could have known something if we prepared in advance by looking at the trend even before he started the project, but in this situation right now, we should be calm and come up with a long-term solution. We should actually support him and find out more.”
Hwang Jun-Young touched his hair like he wasn’t open to the idea.
“What if we push for a revision to the law that allows us to ask customers for their genetic testing results? Then, we just don’t accept customers with a high probability of cancer.” Hwang Jun-Young asked.
“Oh...” Lim Gil-Won exclaimed.
Right now, genetic testing was not left in the insurance service’s history as it was not a medical practice. Additionally, consent items for access to personal information were focused on insurance services in the existing insurance subscription form. As such, there was currently no legal justification for insurance companies to ask customers for their genetic testing results that happened at A-Gen.
“That’s right. We should ask for that!” Baek Joong-Hyuk spoke up again. “As the CEO said, if there is an imbalance in information, people with a high incidence may choose insurance companies as a result of genetic testing. The information must be given equally.”
“That may be very bad for the image of our company,” Lim Gil-Won criticized.
“Director Lim. Even now, we refuse customers or set high premiums if we retrieve medical records and see that they have received chemotherapy in the past five years. Isn’t it similar to this?” Baek Joong-Hyuk said.
“But isn’t it different to say that to normal people who have never even developed the disease? We’re saying that they can’t get our insurance because it seems like they will develop it based on genetic testing data.”
“It doesn’t matter. All the insurance companies will eventually do that.”
Baek Joong-Hyuk stopped Lim Gil-Won firmly. Then, he glanced at the CEO.
“Sir, I will contact congressmen and push for this.”
“But it will take time to revise a law. What will we do about people who swarm here after receiving genetic testing from A-Gen?” Lim Gil-Won asked.
“We can ask them if they have received genetic testing before,” Hwang Jun-Young replied.
“Not their test results? Just whether they have received testing or not?”
“Yes. Then, just make up some excuse for the people who have received genetic testing before and refuse them.”
“...”
“If that keeps repeating, people may avoid genetic testing on their own. Do you know why?”
“Why?”
“What will people think when experiences of being denied insurance registration after saying they have received genetic testing accumulate?”
“...”
“They might think that insurance companies can view genetic testing results through some unknown route, right?” Hwang Jun-Young said. “Then, insurance is not the problem. They will begin wondering if this will cause problems in getting a job or being promoted. What company would promote someone who has a ninety percent chance of developing lung cancer in their fifties to an executive? There will be widespread distrust that insurance companies can access this information, or that maybe A-Gen secretly sells the health information. Let’s secretly back up that rumor. Then, the growth of the genetic testing market will become much shorter. We can buy enough time for the bill to be revised.”
“Wow, no one can think like you, sir.”
Baek Joong-Hyk clapped briefly.
“I heard from Director Kim that you wanted to see me,” Young-Joon said.
“...”
Lim Gil-Won bit his lip and gathered his thoughts.
“Phew.”
He took a shot, then wiped his lips. “Mr. Ryu, SG Life is trying to secretly harm your genetic testing service.”
“The genetic testing service?”
“Yes. They are trying to make it seem like A-Gen is secretly selling genetic testing results to outsiders by refusing insurance registration to customers who have received genetic testing.”
“...”
“They are going to buy themselves time with that, then include genetic test results as a reference document when registering for insurance by revising the law. And they are going to refuse registration depending on those results.”
Young-Joon stared at Lim Gil-Won.
“Why are you telling me this?”
“Pardon?”
“I know that the genetic testing business can impact the insurance industry. It seems like SG Life has prepared a response to that, but why are you telling me this?”
“...”
Lim Gil-Won looked a little dejected.
“Mr. Ryu, insurance is about dividing risk according to the law of large numbers. It is the last resort of poor, ordinary folks who have faced a huge catastrophe called disease,” he said. “And genetic testing is a technology that predicts those catastrophes. It is also the hope of ordinary folks.”
“...”
“I don’t want the insurance industry to obstruct the future of a technology like that. The genetic testing business should flourish in the way you do it, Mr. Ryu. And the insurance industry should adapt to that and look for other ways to survive. It shouldn’t be like this. And refusing registration based on genetic testing results? How can we do that? Then where do they get protection when they get sick? These people have a high incidence rate, too. This isn’t dividing risk, it’s giving all of it to one side.”
“I see.”
“This is not the insurance industry I know and have been doing so far.”
“...”
“There were some people who called me a genius and whatnot because everything went well for me at the company as I became a senior managing director in my forties. It’s funny saying this in front of an actual genius, but I am actually not that smart. This industry was attractive to me, so I just worked hard. How democratic is it that everyone holds hands and shares the risk of danger in the unknown future?” Lim Gil-Won said with a serious face, then suddenly burst into laughter.
“Haha, maybe I am drunk. I said some unnecessary things.”
“It’s fine.” Young-Joon smiled.
“And thank you for telling me about SG Life’s strategy. I have a countermeasure as well.”
“A countermeasure?”
“Yes.”
“What is it!”
“I can’t tell an SG Life executive.”
Young-Joon grinned.
“Oh... Yes, that’s right. Don’t tell me. I will have to tell the CEO if he asks me.”
Lim Gil-Won nodded as he licked his lips.
“Excuse me, I need to use the restroom.”
Young-Joon got up from his seat. He turned the corner in the hall and left the building. He took out his phone and called Yoon Dae-Sung, the CEO of A-Gen.
“Sir, sorry for calling so late. Were you asleep?”
—No, I haven’t even gone home yet.
“Haha, I asked for something too hard, right? I’m sorry. I don’t know anything about the financial industry because all I’ve done is research.”
—It’s alright. It’s not that hard for me to make an insurance company in the form of a subsidiary of A-Gen.
Yoon Dae-Sung said.
“I just heard something, and it seems like the insurance industry is reacting like how I expected them to.”
—That’s normal. What crazy person would register insurance for people who are considered high-risk from genetic testing results? Even I was surprised.
Young-Joon grinned.
“If it is a loss for an insured person to develop a disease, the way to improve profits is not to prevent high-risk groups from joining. It is best to sign them up, get insurance premiums from them, and make the customer not get sick or diagnose it extremely early and treat it cheaply.”