Industry groups voice unified concern over price cuts

Emergency Countermeasure Committee for Drug Pricing System Reform for Industry Development holds first meeting

Seeks practical measures to minimize industry damage and deliver rational opinion regarding the government's system reform

(From left) Dong-hee Lee, Vice Chairman of the Korea Pharmaceutical Traders Association; Young-joo Kim, President of Chong Kun Dang; Jung-jin Kim, Chairman of the Korea Drug Research Association; Yeon-hong Noh, Chairman of the Korea Pharmaceutical and Bio-Pharma Manufacturers Association; Hyung-seon Ryu, Chairman of the Korea Pharmaceutical Traders Association; Yong-joon Cho, Chairman of the Korea Pharmaceutical Industry Cooperative; Jae-kook Lee, Vice President of the Korea Pharmaceutical and Bio-Pharma Manufacturers Association.

Leaders of pharmaceutical organizations have reached a consensus that the government's additional drug price cuts will inflict significant damage on the Korean pharmaceutical industry.

The Emergency Countermeasure Committee for Drug Pricing System Reform for Industry Development, formed by major pharmaceutical groups, including the Korea Pharmaceutical and Bio-Pharma Manufacturers Association, held a meeting at the association on the 27th.

This meeting comes just three days after the KPBMA, the Korea Biomedicine Industry Association, the Korea Pharmaceutical Traders Association, the Korea Drug Research Association, and the Korea Pharmaceutical Industry Cooperative resolved to join the emergency committee on the 24th.

The committee discussed the potential impact of the drug pricing reform based on the details known so far, as the government has not formally announced the plan, and exchanged views on future countermeasures. The government is reportedly preparing to announce a major overhaul of the drug pricing system that will significantly lower the pricing standards for generics compared to current rules.

Participants agreed that implementing additional drug price cuts during the industry’s “golden time” for advancing into a global pharmaceutical powerhouse—driven by increased R&D investment—would weaken the nation’s R&D and manufacturing base. They also raised concerns that the reform could increase reliance on expensive imported medicines, thereby undermining national health security.

Attendees included the co-chair of the emergency committee, Yeon-hong Noh (Chairman of the Korea Pharmaceutical and Bio-Pharma Manufacturers Association), as well as co-vice-chairs Hyung-seon Ryu (Chairman of the Korea Pharmaceutical Traders Association), Jung-jin Kim, (Chairman of the Korea Drug Research Association), Yong-joon Cho (Chairman of the Korea Pharmaceutical Industry Cooperative), as well as committee leaders including Young-joo Kim, Head of the Planning & Policy Committee, and Jae-kook Lee, head of the Public Relations Committee, and executives from the associations and member companies.

The committee stated it will continue to deliver rational industry feedback to the government on the proposed pricing reforms and will proactively present practical alternatives to minimize negative impacts on the industry.