South Korea moves to tighten oversight of 15,000 pharmaceutical CSOs

  • South Korea’s Health and Welfare Ministry is convening a council meeting on stronger CSO oversight.
  • About 15,000 CSOs operated in South Korea in 2024, with sole proprietors comprising 70%.
  • The government plans revised rules based on industry views and expert recommendations.

South Korea’s Ministry of Health and Welfare is convening the second meeting of its public-private council on pharmaceutical industry innovation on Sept. 17 to discuss stronger management and supervision of contract sales organizations, or CSOs. These businesses conduct drug sales and promotional activities under contract from pharmaceutical companies and other entities. Their number reached about 15,000 in 2024, with sole proprietors accounting for 70% of the total. High performance-linked commissions and multi-layer subcontracting have spread alongside the market’s expansion, raising concerns about transparency and accountability in pharmaceutical sales. Government officials, public institutions, industry associations, drugmakers and outside experts will review the existing oversight framework, examine problems identified in the field and consider practical improvements. Jeong Kyoung-sil, head of the ministry’s Office of Healthcare Policy, said the government would use industry and expert input to strengthen CSO supervision, redefine the organizations’ role and establish sounder pharmaceutical sales practices.

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