South Korea's pharmaceutical market estimated to be worth around $10.5 billion

South Korea ranks as one of the world's leading economies, with a population approaching 50 million and overall Gross Domestic Product estimated at $603.6 million in 2009, placing it among the top 20 in the world. As a result, much of the population expects a high level of medical care, notes a new report added to Research and Markets offerings.

The South Korean pharmaceutical market is estimated to be worth around $10.5 billion, with per capita expenditure equal to $212 in 2009. In value terms, the overall market is just outside the top 10 in the world. In per capita terms however, spending is among the top 30 globally, similar to countries like New Zealand and Croatia.

The bilateral Free Trade Agreements (FTAs), especially with the USA and the European Union, are expected to be the catalyst for steady growth in the South Korean pharmaceutical market over the next few years, according to the report.
The FTA with the EU is expected to be concluded in the near future, but the one with the USA, although signed in 2007, appears unlikely to be approved by either government anytime soon, with several sticky issues still unresolved and continued hard bargaining by both parties, it notes.

South Korea's regulatory environment for pharmaceuticals has always been a difficult one for international companies. Problems typically range from poor protection of data, especially in a market dominated by a large number of local manufacturers of generic drugs and lack of transparency in the review of drug prices by the authorities.

In July 2009, the Korea Pharmaceutical Manufacturers Association (KPMA) and the Korean Research-based Pharmaceutical Industry Association (KRPIA), composed mainly of international manufacturers, sought approval from the Ministry for Health, Welfare and Family Affairs for a fair trade agreement effective August 2009 to outlaw rebate activity within the industry, including discounts on the price of drugs.