U.S., KOREA SETTLE DRUG DISAGREEMENT

South Korea and the United States have resolved a disagreement over Korea's new drug policy, one of the major hurdles in efforts to form a free trade pact.

The U.S. has accepted Korea's plan to change rules on drugs covered by national insurance. The plans had caused the second round of talks on a free trade agreement (FTA) in Seoul a few weeks ago to end earlier than scheduled after the U.S. ended negotiations.

The new drug plan requires individual drugs to be approved for insurance to cover, so drugs must be cost-effective to be covered. The plan goes in effect in November.