Why is Mounjaro expensive in Korea?

Why is Mounjaro expensive in Korea?
The main reasons why the price of Mounjaro, a treatment for diabetes and obesity, is higher in Korea compared to other countries like Japan are differences in health insurance coverage, drug pricing methods, and distribution structures.
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The primary causes can be summarized as follows:
Non-covered health insurance (Market-driven pricing): In Korea, Mounjaro for the purpose of obesity treatment is a non-covered (uninsured) item. Unlike covered medicines where the state controls the price, non-covered medicines allow pharmaceutical companies, distributors, and hospitals to set prices autonomously based on market conditions, resulting in higher costs for patients.
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Differences in state-led drug price management systems (Comparison with Japan): In Japan, Mounjaro is included in the public health insurance drug pricing system for diabetes treatment, etc., and the Ministry of Health, Labour and Welfare directly manages official drug prices and takes periodic reduction measures (e.g., a 25% price cut). In contrast, Korea is outside the fence of government price control, making price adjustment relatively difficult.
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Distribution structure and global pharmaceutical company pricing strategies: Global pharmaceutical companies (Eli Lilly) set different supply prices for each country considering economic levels, market size, competition, and bargaining power with health authorities. When wholesale margins occurring during the domestic distribution process and the pricing policies of individual medical institutions are added, the final consumer price rises.
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Due to these institutional differences, domestic prices appear high compared to Japan and other countries, which has recently become a social issue as some demand leaks overseas through medical tourism for prescriptions.