Prescription drug prices in South Korea are among the lowest in the developed world, with Koreans paying just 25.6 percent of what Americans pay on average for the same medicines, according to new data released by the Korea Biotechnology Industry Organization.
The analysis, published Monday by KoreaBIO’s Bio-Economic Research Center, compares 2022 prescription drug prices across 33 OECD member countries. Based on a February 2024 study by the RAND Corporation, supported by the US Department of Health and Human Services and using IQVIA MIDAS data, the report confirms what many in the industry have long suspected: South Korea remains one of the most affordable countries in the world for pharmaceuticals.
On average, drug prices in the US are 3.9 times higher than in South Korea. For brand-name drugs, the gap grows to 7 times. Among the top 60 revenue-generating medicines in the US, prices are 8.4 times higher. Biologics are also significantly more expensive, costing over 5.7 times more than in Korea.
The report also highlighted US price premiums over other major markets: 3.5 times higher than Japan, 3.3 times higher than France, 2.9 times higher than Germany, and 2.7 times higher than the United Kingdom.
Turkey showed the greatest disparity, with US drug prices more than 10 times higher than those in Turkey.
The report comes days after US President Donald Trump issued letters to 17 global pharmaceutical firms demanding that they lower US prices to match the “most favored nation” level, referring to the lowest price charged in any OECD country. The companies have been given a 60-day deadline to respond.
mjh@heraldcorp.com
