Market Access Tracker Program

2013

South Korea: Market Access Tracker

Report Authors
Neil Grubert, M.A.
Lulu Pickering, Ph.D.

Introduction:

Last Updated 4 March 2013
Decision Resources’ Market Access Tracker service for the Asia Pacific region explains the challenges and opportunities to gaining and maintaining favorable market access terms in the mature and emerging markets of Australia, China, India, Japan and South Korea. Timely analysis of key events, regular webinar update presentations, and access to our team of experts will equip biopharmaceutical companies with the insight needed to evaluate the implications of the latest changes for their business and to assess the commercial outlook in each market.

Major reforms are under way in South Korea that will have a dramatic impact on the pharmaceutical industry. Following the ratification of important trade agreements with the United States and the EU in 2011, South Korea plans to revise its regulation of intellectual property protection and pricing and reimbursement. These changes should make these processes more transparent and predictable, which are long held goals of MNCs doing business in South Korea. The government has also set a goal for South Korea to rank among the 7 largest pharmaceutical exporters by 2020. At home, however, the pharmaceutical industry will come under increasing pressure as the government continues to wrestle with issues of access to treatment and affordability.

Scope:

Socioeconomic trends: Gross domestic product (GDP); per capita gross national income (GNI).

Demographics: Overall population (projected to 2030); life expectancy at birth (projected to 2030), median age and number of senior citizens (projected to 2030); urban population (projected to 2030).

Healthcare system: Healthcare spending; health insurance coverage; National Health Insurance; Medical Aid; long-term care insurance (LTCI) for the elderly; out-of-pocket payments; provision of healthcare services; prescription drugs as a source of revenue for healthcare providers.

Intellectual property protection: membership of the World Trade Organization; patent protection; data exclusivity.

Pharmaceutical pricing and reimbursement: Key decision makers; health technology assessment; price negotiations.

Cost containment measures: Price-volume agreements; triennial repricing; rearrangement of pricing for listed drugs; Market-Based Actual Transaction Price (M-ATP) system; rebate penalties; generics; prescription monitoring.

Outlook and implications for the pharmaceutical industry: New drug pricing and reimbursement system in 2012; impact of free trade agreements with the EU and the United States; 2012 Pharmaceutical Industry Competitiveness Enhancement Plan.

Exhibits: 17 data-rich tables and figures.


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Mentioned in this report:

  • Organizations
  • - Benefit Coordination Committee
  • - Central Medical Review Committee (CMRC)
  • - Drug Reimbursement Evaluation Committee (DREC)
  • - Health Insurance Review and Assessment Service (HIRA)
  • - Korea Food & Drug Administration (KFDA)
  • - Ministry of Health and Welfare (MOHW)
  • - National Health Insurance Corporation (NHIC)
  • - Organisation for Economic Co-operation and Development (OECD)
  • - United Nations Population Division (UNPD)
  • - World Health Organization (WHO)
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