Posted July. 18, 2002 22:17,
The National Assembly convened the Health and Welfare Committee on the 18th and embarked on investigation into allegations that the US government pressed the Korean government on drug pricing system, and that the lobbying by multinational pharmaceutical companies caused the government to replace ministers.
In a bid to verify the allegation of former Health and Welfare minister Lee, who was replaced in the July 11 cabinet reshuffle, the committee decided to hear from former Health and Welfare ministers Lee Tae-bok and Kim Won-gil, vice minister Lee Gyeong-ho, Shim Han-sup, vice chairman of the Korea Research-based Pharmaceutical Industry Association on the 26th.
Rep. Kim Hong-shin of the GNP said in a meeting yesterday, "The Health and Welfare Ministry announced in May 31, 2001 to introduce the reference pricing system starting from Aug. 1. But under the pressure by the US, he announced the cancellation of the system in Sep. 5, 2001." He also produced evidence that the US government influenced the Korean government regarding the drug pricing system six times.
Rep. Kim argued that the US government sent a letter to then Health and Welfare minister Kim Won-gil in July last year warning of trade frictions between Korea and the US. The US Commerce Department, the US Trade Representatives and the US embassy in Korea mobilized every possible means to excercise undue pressure on the Korean government. Former Health and Welfare minister Lee was dismissed after refusing the US demand.
He added, "Thomas Hubbard, US Ambassador to Korea requested former minister Lee to form a working group to discuss the drug pricing system. Deputy U.S. Trade Representative (USTR) Jon Huntsman also met Lee last month and asked to let foreign drug companies participate in the process of setting the standard of drug prices, to no avail."
In response, Kim Sung-ho, Health and Welfare Minister said, "It is absurd that the government dismisses a minister under the pressure from multinational pharmaceutical companies. I am willing to introduce the reference pricing system, but we need more time to form a consensus between the public and other parties concerned such as doctors and pharmacists."
Meanwhile, the Health and Welfare Ministry said, "the working group hold three meetings so far. Through the meetings the working group explained what the US inquired and suggested out opinions on questions the US raised. But the group did not make any specific decision since it is not a decision-making body."