In its latest edition of "Science, ICT Policy and Technology Trends," KISTEP underscores the urgent need for specific legislation and comprehensive mapping of supply chains to ensure a stable supply of medications during crises.
The report calls attention to the vulnerabilities exposed by the COVID-19 pandemic and emphasizes the necessity of preparing for future disruptions.
“While major nations have adopted phased measures to tackle pharmaceutical supply chain instabilities, South Korea’s efforts remain comparatively insufficient,” said Jeong Soon-kyu, principal researcher at the Korea Health Industry Development Institute.
Although South Korean authorities have supported research and development for emerging epidemics and promoted domestic manufacturing of essential medications, the report highlights significant gaps in other areas.
These include inadequate support for domestic companies to secure raw materials, expand manufacturing facilities, and localize ingredient production. Such deficiencies leave the country vulnerable to global supply chain disruptions.
Currently, China and India dominate the global production of pharmaceutical ingredients, accounting for 44 percent and 20 percent, respectively. South Korea’s reliance on imports for these critical components underscores the need for enhanced domestic production capabilities.
The report noted that the country has faced persistent medication shortages, with 46 essential drugs either ceasing production or importation over a three-year period. As of April last year, 490 medications were identified as facing supply instabilities, including 95 designated as essential or shortage-prevention drugs.
Jeong warned that rapidly shifting global supply chains, shaped by geopolitical tensions, climate disasters, and economic uncertainties, further complicate the situation. “Swift collection and utilization of accurate information are increasingly critical in managing supply chain risks,” he said, pointing to the impacts of U.S.-China tensions, Middle East conflicts, the Russia-Ukraine war, and climate-related disasters.
To address these challenges, the report recommends increased government support for domestic pharmaceutical companies.
Proposed measures include facilitating technology exports to U.S. firms, enabling contract manufacturing arrangements, acquiring overseas production facilities, and improving access to procurement opportunities for biosimilars in European markets.
Jeong also highlighted South Korea’s advanced ICT capabilities as a potential asset in mitigating supply chain vulnerabilities. Integrating technologies such as big data, artificial intelligence, and blockchain into pharmaceutical supply chains could enhance crisis response and improve efficiency in identifying and addressing weaknesses.
The report advocates for a comprehensive approach to supply chain management, encompassing risk assessment, investment in manufacturing capacity, and strategic stockpiling of essential medications. It also emphasizes the need for governance frameworks that support sustained policy implementation.
Jeong expressed optimism about the potential for progress. “With sustained government support over the next five years, South Korea could establish a holistic system for pharmaceutical supply stabilization, resolving supply shortages for specific medications by 2030,” he said.
reporter
Kim Dong-young
davekim0807@ajupress.com
Copyright ⓒ Aju Press All rights reserved.
View more comments