Government: Korean Pharmaceuticals Contribute to U.S. Supply Chain Stability and Improved Patient Access

Official Statement Submitted to the U.S. Administration
Government Emphasizes Korean Pharmaceuticals Support Supply Chain Stability and Patient Access
Calls for Strengthened Cooperation to Maximize Mutual Benefits

The South Korean government has submitted an official statement to the United States, asserting that imports of Korean pharmaceuticals contribute to the stability of the U.S. supply chain and improve patient access.

The government announced on May 6 that it had prepared and submitted its official opinion on May 4 (local time) regarding the national security investigation into the pharmaceutical sector currently being conducted by the Donald Trump administration under Section 232 of the Trade Expansion Act.

Through the statement, the Ministry of Health and Welfare explained that the government emphasized that imports of Korean pharmaceuticals do not pose a threat to U.S. national security. On the contrary, they contribute to supply chain stability and improved patient access, making tariff measures unnecessary.

Specifically, the government stated in its opinion that pharmaceutical trade between South Korea and the United States is based on mutual trust and strategic cooperation. Despite differences in the size of the pharmaceutical industries and healthcare markets between the two countries, the fact that the United States is a major importer of pharmaceuticals from Korea demonstrates the close economic and health cooperation between the two nations.

The government particularly highlighted that Korean contract development and manufacturing organization (CDMO) companies support the diversification of production for U.S. pharmaceutical firms, thereby contributing to supply chain stability and alleviating the burden of drug prices for patients. The government also noted that joint responses by the two countries during the pandemic illustrate how such cooperation is directly linked to national security.

Furthermore, the government proposed to the U.S. administration that both countries should strengthen cooperation to enhance access to essential medicines and promote innovation, and that building a supply chain based on mutual trust would maximize shared benefits.

Previously, the Trump administration launched a national security investigation into the pharmaceutical sector last month, based on Section 232 of the Trade Expansion Act, which grants the president the authority to restrict imports through measures such as tariffs if imports of certain items are deemed to threaten national security.

On May 5, former President Trump stated that he would announce itemized tariffs on pharmaceuticals "within the next two weeks."

The Ministry of Health and Welfare and the Korea Health Industry Development Institute have been operating a Biohealth Industry Tariff Damage Support Center since April 25 to enhance the competitiveness of domestic biohealth companies threatened by U.S. tariff measures and to minimize potential damages.

Minister of Health and Welfare Cho Kyuhong stated, "To minimize the impact on the biohealth industry, including pharmaceuticals, medical devices, and cosmetics, we will strengthen our government-wide response. In addition to actively participating in inter-ministerial trade negotiations in cooperation with relevant ministries, we will closely monitor trends in pharmaceutical tariffs and proactively review and implement support measures for the industry."