OBJECTIVES:  Recently approved in South Korea, Advate is the only recombinant Factor VIII (FVIII) replacement therapy processed without the addition of human or animal proteins, eliminating the risk of pathogen transmission associated with these blood-based additives.  The objective of this study was to determine the clinical and economic value of Advate if a new blood-based pathogen were to emerge in South Korea.  METHODS:  An outbreak of Hepatitis C virus (HCV) was used as a real life example of pathogen transmission in the South Korean hemophilia population.  A Markov model was created to estimate the natural progression of HCV infection and calculate the incremental cost per life year saved (cost/LYS) for Advate compared to the current FVIII products available in South Korea.  Clinical inputs were derived from the published literature and direct costs were calculated from the South Korean payer’s perspective based on 2005 Korean Wons.  In the base case scenario Advate was given a 2% premium over Recombinate.  Costs were discounted and sensitivity analyses were conducted.  RESULTS:  In this model, approximately 700 (58%) hemophilia patients would not have become infected with HCV if Advate was utilized instead of the current FVIII products.  Preventing HCV infection in these patients would have saved 5269 years of life.  The cost effectiveness of Advate was within commonly accepted thresholds at WONS8 million /LYS (approximately USD$8000/LYS).  Varying the Advate premium between 0 to 8% changed the cost effectiveness ratio to WONS3.5 and 14.5 million/LYS, respectively.  CONCLUSIONS:  This research demonstrates that if another infectious disease, with a similar burden to HCV, entered the Korean blood supply, Advate would be a cost-effective treatment saving significant years of life. This study demonstrates the value of utilizing a FVIII product that eliminates the transmission risk of another infectious disease similar to HCV.