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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Ahead of the government’s planned drug price reform, South Korea’s pharmaceutical industry has urged a delay and full review, citing potential economic and employment impacts.
The Emergency Committee for Pharmaceutical Price System Reform, representing the industry, warned that the proposed cut in generic drug prices—from 53.55% to around 40% of original drug prices—could lead to losses of approximately KRW 3.6 trillion and put 14,800 jobs at risk. The group stressed that the reform could weaken industry competitiveness, reduce R&D investment, and shrink profitability, as top 100 pharma companies currently operate with an average net margin of just 3%.
The committee requested the government to temporarily suspend the reform and engage in thorough consultations to revise the plan, emphasizing that sufficient time is needed to develop a sustainable policy framework.
알파경제 Paul Lee 특파원(hoondork1977@alphabiz.co.kr)
