[DailyPharm] "Big Change is Coming" - Government Unveils Unprecedented Drug Pricing Reform

On December 8, 2025, Kim Sungju, Senior Specialist at Lee & Ko, appeared on the DailyPharm “Reimbursement at a Glance” segment to discuss the government’s newly announced, large-scale overhaul of the nation’s drug pricing system. Kim explained that “the large-scale drug pricing reform plan announced by the government includes a plan to secure financial resources for improving access to innovative new drugs by lowering prices of generics. Specifically, the government intends to reduce the current generic pricing benchmark from 53.55% of the originator price to the 40% range.”

Kim also noted that “the government aims to implement the reform in the second half of 2026. Considering the domestic pharmaceutical industry’s heavy reliance on generics, this is understandably a cause for concern. In particular, due to the tighter controls on multiple-product listings and the strengthening of the stepped pricing system to prevent excessive competition – under which prices may be reduced further when ten or more products are listed –it would be appropriate to view the actual prices of most generics as falling below, rather than within, the 40% range of the originator price..