OBJECTIVES: In Korea, the price of new drug has been decided through price negotiation after evaluation for reimbursement in decision process since 2007. The price of new drug was negotiated considering price of reference drugs, budget impact analysis, substitution rate, etc. This study attempted to analyze states of new drugs' listing and identify influential factor in reimbursement and pricing negotiation, and to analyze satisfaction of pharmaceutical companies concerned on price negotiation. METHODS: Data on reimbursement for 3 years (2007.01.01-2009.12.31) were obtained from the agency’s website posting results for reimbursement determination, and Korean Ministry of Health and Welfare Affairs' drug notification on the results of price negotiation. The questionnaire consisting of negotiation guideline (article 10, 11) and satisfaction was made and used to collect responses of pharmaceutical companies' working group. The e-mail for the survey was sent out to 31 companies, survey response rate was 71%. RESULTS: Cost-effectiveness (84.5%) was affecting factor of reimbursement in decision process. The lead time of reimbursement and pricing was around 12.8months. The listing price was determined as average 67% compared to application price, application price was cut by approximately 20% in decision-making of reimbursement, after that, that price was cut by approximately 17% in price negotiation process. In negotiation process, the price of reference drugs had great influence on results of negotiation. Mainly the lowest price in therapeutic area was referenced in negotiation process. Negative perceptions on process of pricing negotiation were found especially predictability of price and appreciating its value, and the needs for detailed guideline have been mentioned. CONCLUSIONS: The satisfaction of negotiation process was very negative, the reason was that Positive list system made new drugs' listing more difficult and lengthened the lead time of listing. To enhance the negotiation process, it is necessary to develop the detailed guideline on process of price negotiation.