Korea Pharmaceutical and Bio-Pharma Manufacturers Association (KPBMA) Chairman Won Hee-mok urged the government to establish a steering committee under the prime minister to integrate government policies and strategies for the local pharmaceutical and biopharma industry.  

The Yoon Suk-yeol administration vowed to support the pharmaceutical sector but industry officials have rarely felt any difference in the business field, Won said at a news conference in Seoul, Monday. 

The Korean market takes up only 1.5 percent of the global pharmaceutical market, according to KPBMA.

Although Korea was the third country to develop both a Covid-19 vaccine and a Covid-19 treatment last year, the nation still heavily relies on imported drugs in the active pharmaceutical ingredient (API) sector.

As of 2021, Korean-made APIs accounted for only 24.4 percent of the total, Won noted. 

To enlarge the homegrown APIs and support domestic drugmakers to develop a global blockbuster drug, the government should swiftly ease regulations and lift drug prices reasonably, he said.

According to Won, Korean pharmaceutical companies report about 6-7 percent operating profit margins and still allocate over 10 percent of the revenue to R&D.

“I’m not saying that we should raise drug prices no matter what. I’m just saying that as the only cash cow is drug price, we should decide drug prices taking into account various situations,” he said. 

Innovating the drug pricing system will help companies raise funds for R&D, which will motivate new drug development, he went on to say.

Won also called for the government to expand the size of a bio fund to 1 trillion won and run the fund until the end of a final clinical trial.  

Meanwhile, Won’s term as KPMBA chief ends in February. He has been leading the association for six years.