[Reporter's View] Korea’s vaccination space: ups and downs

The advancements and setbacks in Korea’s vaccination space

Has improved in terms of localizing vaccines, but price fixing of inoculation costs remains a persistent issue

Vaccines are at the forefront of localized pharmaceuticals in Korea.

 

Leading domestic companies such as GC Biopharma and SK Bioscience are now responsible for vaccine production and supplying preventive vaccines for various diseases, including influenza.

 

The commercialization of so-called “premium homegrown vaccines,” such as pneumococcal protein vaccines, cervical cancer vaccines, and shingles vaccines, is also progressing steadily and is set to be completed soon.

 

However, despite the improvement in vaccine competitiveness, the vaccination fee cartel among doctors in South Korea remains unchanged.

 

For example, if the purchase price of a vaccine (the price at which doctors buy vaccines from pharmaceutical companies) is KRW 100,000, the implicitly accepted appropriate inoculation fee among doctors is around KRW 200,000.

 

However, after some time passes, some local clinics lower the vaccination fee to as low as KRW 150,000 in an attempt to sell more at lower prices.

 

Some even abandon their margins altogether, offering even lower prices through promotional events.

 

These clinics then face criticism from neighboring doctors.

 

They are labeled as traitors who betrayed their colleagues for their own gain.

 

Such controversies can escalate into disputes between different medical specialties.

 

The medical society of the relevant specialty may launch a campaign claiming that people should be vaccinated by specialists in their respective field.

 

The interesting point lies in the margins.

 

For vaccines, the difference between the inoculation fee and the purchase price, minus approximately 30% tax, constitutes the doctors' income.

 

If they receive the “appropriate price” they claim—KRW 200,000 per vaccination—the actual income may vary depending on tax reporting, but amounts to roughly 70,000 won.

 

For some workers, this is equivalent to a day's wage.

 

Even if they receive KRW 150,000, approximately KRW 35,000 margin remains.

 

This is by no means a small amount.

 

Private practitioners claim that after including vaccination fees and labor costs, nothing remains.

 

Meanwhile, during the flu season, they engage in fierce competition to secure supplies of flu vaccines, where the purchase price is KRW 10,000, and an approximately KRW 12,000 margin remains per inoculation.

 

Private practice doctors are self-employed.

 

This is a fact.

 

Therefore, it is understandable that they want a high income that commensurates with the effort they put into obtaining their medical license.

 

Additionally, since vaccine prices are not fixed, they have the right to set their own prices.

 

However, they should refrain from claiming that twice the purchase price is the “appropriate price” and form a cartel.

 

I earnestly hope they will finally “recognize” that the era when doctors' words were unquestioningly accepted is now over.