Why Did Compensation for Drug Side Effects in South Korea Decline?
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Synopsis
Discover the recent decline in drug side effect compensation in South Korea for the first time in six years. This article explores the implications of this drop, the government's response, and future plans to enhance animal medicine markets.
Key Takeaways
- Compensation for drug side effects has dropped for the first time in six years.
- The government collected 4.75 billion won from pharmaceutical companies for relief.
- Compensation paid out amounted to 1.84 billion won in 2024.
- There is a need for better public awareness of the relief program.
- Future plans aim to expand the animal medicine market significantly.
Seoul, May 25 (NationPress) The total amount of compensation awarded to individuals affected by drug side effects in South Korea saw a reduction in 2024, marking the first such decline in six years, according to government statistics released on Sunday.
The government raised 4.75 billion won (approximately US$3.5 million) last year from 760 pharmaceutical companies for the national drug side effects relief fund, as reported by the Ministry of Food and Drug Safety and the Korea Institute of Drug Safety & Risk Management.
This relief initiative offers financial support to individuals or families of those who have experienced death, disability, or illness resulting from adverse drug reactions, as noted by the Yonhap news agency.
Financial aid encompasses one-time payments for death or disability, as well as medical and funeral expenses.
In 2024, compensation was disbursed for 161 cases, amounting to 1.84 billion won, which is an 18.3 percent decrease from 2.25 billion won the previous year, according to the data.
The reduction is primarily attributed to a decline in compensation for fatalities associated with side effects and a general lack of public awareness regarding the program.
"Since payouts constituted only 38.7 percent of the funds collected last year, the government should enhance promotional efforts through hospitals, medical practitioners, and pharmacies," commented an industry representative.
In a related note, South Korea is planning to expand the animal medicine market to 4 trillion won (around US$2.7 billion) by 2035, as part of initiatives to cultivate new growth sectors for the economy, as stated by the agriculture ministry last month.
The government also intends to quintuple the nation's exports of veterinary medicine products to 1.5 trillion won and establish 15 animal pharmaceutical firms each generating annual revenues of at least 50 billion won within the next decade, according to the Ministry of Agriculture, Food and Rural Affairs.
The ministry highlighted that this strategy is in response to the increasing global demand for animal pharmaceutical products, driven by a rise in pet ownership, consumption of livestock products, and the prevalence of infectious diseases in animals.
Point of View
It's essential to acknowledge the complexities surrounding compensation for drug side effects in South Korea. While the decline raises concerns about public awareness, it also prompts a discussion on the need for improved communication and outreach from the government to ensure affected individuals receive the support they need. The balanced approach will benefit the nation as it strives for better health outcomes.
NationPress
17/06/2025
Frequently Asked Questions
What caused the decline in drug side effect compensation?
The decline is mainly due to a reduction in compensation for deaths linked to side effects and a lack of public awareness of the relief program.
How much was compensated in 2024?
In 2024, the total compensation paid out reached 1.84 billion won, which is an 18.3 percent decrease from the previous year.
What support does the relief program provide?
The program offers financial assistance, including lump-sum payments for death or disability, medical expenses, and funeral costs.
How is the government planning to address the decline?
The government aims to actively promote the relief program through hospitals, medical professionals, and pharmacies to increase public awareness.
What are the future plans for the animal medicine market?
South Korea plans to triple the size of its animal medicine market to 4 trillion won by 2035 and increase exports significantly.
