Health ministry moves to tighten oversight of drug sales agents

The health ministry said Thursday it will strengthen supervision of contract sales organizations to enhance accountability in pharmaceutical marketing.

Ministry officials hosted the second meeting of the Public-Private Council on Pharmaceutical Industry Innovation at the Korea Press Center early Thursday, gathering government representatives, industry experts and association leaders to review the regulatory framework.

Contract sales organizations, known as CSOs, are businesses entrusted by pharmaceutical companies to handle sales and promotional activities. The market has expanded quickly alongside demand for specialized outsourcing.

Data from 2024 shows approximately 15,000 CSOs are currently operating in South Korea, with sole proprietorships accounting for 70 percent of the total. The ministry noted that high commission rates tied to performance metrics and multi-tiered subcontracting structures have become common.

Jeong Gyeong-sil, director of the healthcare medical policy bureau, emphasized the urgency of establishing a solid institutional foundation. "As the CSO market expands rapidly and business models diversify, it is crucial to secure both transparency and accountability in pharmaceutical sales," he said. "Based on the diverse opinions from the field and expert suggestions raised at this council, we intend to develop concrete measures to strengthen management and supervision of CSOs."

Participants discussed directions for stronger supervision and identified practical tasks to improve industry standards. The ministry plans to formulate specific reinforcement measures based on the insights shared during the session.