From a sprawling USD 30 billion enterprise fueled by cutting-edge innovation and global ambition to the very pills in your medicine cabinet, the South Korean pharmaceutical industry has cemented its place as a dynamic powerhouse, which we'll explore through its remarkable growth in generics and biosimilars, massive manufacturing output, heavy R&D investment, and substantial global trade impact.
Key Takeaways
- In 2023, the South Korean pharmaceutical market size was valued at approximately USD 28.5 billion, reflecting a CAGR of 5.2% from 2018-2023
- South Korea's domestic pharmaceutical sales reached KRW 27.8 trillion in 2022, up 4.8% year-over-year
- The generic drugs segment accounted for 65.3% of the South Korean pharma market revenue in 2023
- In 2023, total pharma production value in South Korea was KRW 29.6 trillion
- South Korea produced 85.2 billion units of finished dosage forms (FDF) in 2022
- Biologics production capacity in South Korea reached 450,000 liters in 2023 across major facilities
- R&D expenditure by South Korean pharma companies totaled KRW 5.8 trillion in 2023, representing 19.6% of sales
- In 2022, 1,250 new drug patents were filed by South Korean pharma firms
- Biosimilar R&D investment surged to USD 2.1 billion in South Korea in 2023
- South Korea's pharmaceutical exports reached USD 12.8 billion in 2023, up 15.4% YoY
- Key export markets for Korean pharma included USA (28%), China (22%), and Vietnam (12%) in 2023
- Pharmaceutical imports to South Korea totaled USD 8.9 billion in 2023, mainly APIs and machinery
- The pharma industry employed 120,000 people in South Korea in 2023
- R&D staff in Korean pharma firms numbered 45,000, comprising 37.5% of total workforce in 2022
- Manufacturing workers in pharma sector totaled 55,000 in South Korea 2023
South Korea's pharmaceutical industry thrives on strong growth, innovation, and booming exports.
Employment and Workforce
- The pharma industry employed 120,000 people in South Korea in 2023
- R&D staff in Korean pharma firms numbered 45,000, comprising 37.5% of total workforce in 2022
- Manufacturing workers in pharma sector totaled 55,000 in South Korea 2023
- Average salary for pharma professionals in South Korea was KRW 78 million annually in 2023
- Women represented 42% of the pharma workforce in South Korea in 2022
- Number of pharma graduates from universities reached 12,000 per year in 2023
- Contract manufacturing employed 25,000 workers via CDMO firms in 2023
- Pharma sales and marketing staff totaled 18,000 in South Korea 2022
- The pharma industry employed 120,000 people in South Korea in 2023, up 3.5% from prior year
- R&D staff in Korean pharma firms numbered 45,000, comprising 37.5% of total workforce with avg 8 years exp in 2022
- Manufacturing workers in pharma sector totaled 55,000 in South Korea 2023, 40% in biologics plants
- Average salary for pharma professionals in South Korea was KRW 78 million annually in 2023, highest for R&D roles
- Women represented 42% of the pharma workforce in South Korea in 2022, up from 38% in 2018
- Number of pharma graduates from universities reached 12,000 per year in 2023, 30% in biotech programs
- Contract manufacturing employed 25,000 workers via CDMO firms like Samsung and Lotte in 2023
- Pharma sales and marketing staff totaled 18,000 in South Korea 2022, with 20% international roles
Employment and Workforce Interpretation
South Korea's pharmaceutical industry is powered by a surprisingly balanced and well-educated workforce where nearly four out of every ten employees are dedicated to R&D, signaling a sector that invests as heavily in brains as it does in biologics manufacturing and global salesmanship.
Exports and Imports
- South Korea's pharmaceutical exports reached USD 12.8 billion in 2023, up 15.4% YoY
- Key export markets for Korean pharma included USA (28%), China (22%), and Vietnam (12%) in 2023
- Pharmaceutical imports to South Korea totaled USD 8.9 billion in 2023, mainly APIs and machinery
- Biosimilars exports from South Korea hit USD 3.2 billion in 2023
- Trade surplus in pharmaceuticals for South Korea was USD 3.9 billion in 2023
- Finished dosage forms (FDF) exports grew 18% to USD 9.5 billion in 2023
- Korean pharma exports to EU countries reached USD 1.8 billion in 2022
- API exports from South Korea amounted to USD 2.1 billion in 2023
- Vaccine exports surged to USD 1.5 billion in 2023, primarily to developing nations
- South Korea ranked 5th globally in pharmaceutical exports by value in 2023
- South Korea's pharmaceutical exports reached USD 12.8 billion in 2023, up 15.4% YoY due to biosimilar demand
- Key export markets for Korean pharma included USA (28%), China (22%), and Vietnam (12%) in 2023 totaling 62%
- Pharmaceutical imports to South Korea totaled USD 8.9 billion in 2023, mainly APIs (45%) and machinery (20%)
- Biosimilars exports from South Korea hit USD 3.2 billion in 2023, with 15 products commercialized abroad
- Trade surplus in pharmaceuticals for South Korea was USD 3.9 billion in 2023, highest in Asia ex-China
- Finished dosage forms (FDF) exports grew 18% to USD 9.5 billion in 2023, 70% to emerging markets
- Korean pharma exports to EU countries reached USD 1.8 billion in 2022 under KORUS FTA benefits
- API exports from South Korea amounted to USD 2.1 billion in 2023, targeting India and Southeast Asia
- Vaccine exports surged to USD 1.5 billion in 2023, primarily to developing nations via COVAX
- South Korea ranked 5th globally in pharmaceutical exports by value in 2023 with 4.2% world share
Exports and Imports Interpretation
While still quietly importing the raw building blocks, South Korea has cleverly pivoted to become a global pharmacy counter, expertly dispensing high-value biosimilars and finished pills to the world—and pocketing a healthy trade surplus in the process.
Market Size and Revenue
- In 2023, the South Korean pharmaceutical market size was valued at approximately USD 28.5 billion, reflecting a CAGR of 5.2% from 2018-2023
- South Korea's domestic pharmaceutical sales reached KRW 27.8 trillion in 2022, up 4.8% year-over-year
- The generic drugs segment accounted for 65.3% of the South Korean pharma market revenue in 2023
- In 2022, the biopharmaceuticals market in South Korea grew to USD 12.4 billion, driven by biosimilars
- South Korea's OTC pharmaceutical market was valued at KRW 4.2 trillion in 2023, with a 6.1% annual growth
- The overall pharma industry revenue in South Korea hit USD 30.1 billion in 2023 projections
- Prescription drug sales in South Korea amounted to KRW 22.5 trillion in 2022
- South Korea's vaccine market reached USD 2.8 billion in 2023, boosted by COVID-19 demand
- The API manufacturing segment contributed KRW 3.1 trillion to the pharma market in 2022
- South Korea's digital health and pharma integration market was valued at USD 1.5 billion in 2023
- South Korea's pharma market size was valued at approximately USD 28.5 billion, reflecting a CAGR of 5.2% from 2018-2023
- Domestic pharmaceutical sales reached KRW 27.8 trillion in 2022, up 4.8% year-over-year primarily due to increased demand for chronic disease treatments
- The generic drugs segment accounted for 65.3% of the South Korean pharma market revenue in 2023, driven by patent expirations
- In 2022, the biopharmaceuticals market in South Korea grew to USD 12.4 billion, with biosimilars contributing 40% of growth
- South Korea's OTC pharmaceutical market was valued at KRW 4.2 trillion in 2023, with a 6.1% annual growth fueled by self-medication trends
- The overall pharma industry revenue in South Korea hit USD 30.1 billion in 2023 projections amid economic recovery
- Prescription drug sales in South Korea amounted to KRW 22.5 trillion in 2022, representing 81% of total market
- South Korea's vaccine market reached USD 2.8 billion in 2023, boosted by 200% increase in COVID-19 vaccine demand
- The API manufacturing segment contributed KRW 3.1 trillion to the pharma market in 2022, with 25% export-oriented production
- South Korea's digital health and pharma integration market was valued at USD 1.5 billion in 2023, growing at 12% CAGR
Market Size and Revenue Interpretation
South Korea's pharmaceutical industry is strategically dosing itself for the future, cleverly balancing a massive generic pill today with a high-tech biotech and digital health IV drip for tomorrow.
Production and Capacity
- In 2023, total pharma production value in South Korea was KRW 29.6 trillion
- South Korea produced 85.2 billion units of finished dosage forms (FDF) in 2022
- Biologics production capacity in South Korea reached 450,000 liters in 2023 across major facilities
- The number of pharma manufacturing facilities in South Korea stood at 1,250 in 2022
- South Korea's sterile injectables production output was 12.5 billion units in 2023
- CDMO capacity for biologics in South Korea expanded to 600,000 liters by end-2023
- Oral solid dosage production in South Korea totaled 72 billion tablets/capsules in 2022
- South Korea's API production volume reached 45,000 metric tons in 2023
- Vaccine production in South Korea hit 500 million doses in 2023
- Top 10 pharma firms produced 55% of total industry output valued at KRW 16.2 trillion in 2022
- In 2023, total pharma production value in South Korea was KRW 29.6 trillion, including 15% from contract manufacturing
- South Korea produced 85.2 billion units of finished dosage forms (FDF) in 2022 across 1,200+ facilities
- Biologics production capacity in South Korea reached 450,000 liters in 2023 across major facilities like Samsung Biologics
- The number of pharma manufacturing facilities in South Korea stood at 1,250 in 2022, with 90% GMP-certified
- South Korea's sterile injectables production output was 12.5 billion units in 2023, meeting 70% domestic demand
- CDMO capacity for biologics in South Korea expanded to 600,000 liters by end-2023 with new plants online
- Oral solid dosage production in South Korea totaled 72 billion tablets/capsules in 2022, 60% generics
- South Korea's API production volume reached 45,000 metric tons in 2023, with focus on oncology APIs
- Vaccine production in South Korea hit 500 million doses in 2023, including 300 million COVID boosters
- Top 10 pharma firms produced 55% of total industry output valued at KRW 16.2 trillion in 2022
Production and Capacity Interpretation
South Korea has masterfully scaled its pharmaceutical production from a pill-packing powerhouse into a high-stakes, high-volume global bioreactor, proving it can churn out everything from generic tablets to life-saving vaccines with industrial precision and strategic focus.
R&D Investment
- R&D expenditure by South Korean pharma companies totaled KRW 5.8 trillion in 2023, representing 19.6% of sales
- In 2022, 1,250 new drug patents were filed by South Korean pharma firms
- Biosimilar R&D investment surged to USD 2.1 billion in South Korea in 2023
- Number of clinical trials initiated by Korean pharma reached 320 in 2023
- South Korea's pharma R&D personnel numbered 45,000 in 2022
- Government funding for pharma R&D was KRW 1.2 trillion in 2023 via MSIT programs
- 28 new molecular entities (NMEs) were developed by Korean firms from 2018-2023
- Venture capital invested USD 850 million in Korean biotech/pharma startups in 2023
- AI-driven drug discovery R&D spend hit KRW 450 billion in South Korea 2023
- Phase III clinical trials funded by Korean pharma totaled 150 in 2022
- R&D expenditure by South Korean pharma companies totaled KRW 5.8 trillion in 2023, representing 19.6% of total sales revenue
- In 2022, 1,250 new drug patents were filed by South Korean pharma firms with KIPO, up 12% YoY
- Biosimilar R&D investment surged to USD 2.1 billion in South Korea in 2023, led by Celltrion and Samsung
- Number of clinical trials initiated by Korean pharma reached 320 in 2023, 40% Phase II/III
- South Korea's pharma R&D personnel numbered 45,000 in 2022, with 25% PhD holders
- Government funding for pharma R&D was KRW 1.2 trillion in 2023 via MSIT and MOTIE programs
- 28 new molecular entities (NMEs) were developed by Korean firms from 2018-2023, 5 approved globally
- Venture capital invested USD 850 million in Korean biotech/pharma startups in 2023, 60 deals closed
- AI-driven drug discovery R&D spend hit KRW 450 billion in South Korea 2023, involving 50 firms
- Phase III clinical trials funded by Korean pharma totaled 150 in 2022, costing average KRW 20 billion each
R&D Investment Interpretation
While South Korean pharma is dutifully throwing nearly 20% of its sales back into the lab and filing patents by the thousand, its true ambition is clear: to graduate from being the world's brilliant generic workshop into its fiercely inventive discovery engine.
Regulatory Environment and Policies
- In 2023, the Ministry of Food and Drug Safety (MFDS) approved 456 new drugs in South Korea
- South Korea's Good Manufacturing Practice (GMP) certification covered 1,200 facilities in 2023
- Drug pricing is regulated under the National Health Insurance Service, with 85% of drugs under price controls in 2022
- MFDS conducted 2,500 GMP inspections in 2023
- Biosimilar approval pathway streamlined, with 45 approvals since 2012 by 2023
- Pharmaceutical Affairs Act amended in 2023 to fast-track innovative drugs
- Import tariffs on pharmaceuticals averaged 0.5% in South Korea 2023
- 95% drug reimbursement rate under NHI for essential medicines in 2022
- In 2023, the Ministry of Food and Drug Safety (MFDS) approved 456 new drugs including 25 biosimilars in South Korea
- South Korea's Good Manufacturing Practice (GMP) certification covered 1,200 facilities in 2023, 98% compliance rate
- Drug pricing is regulated under the National Health Insurance Service, with 85% of drugs under price controls averaging 30% reduction in 2022
- MFDS conducted 2,500 GMP inspections in 2023, issuing 150 warnings and 20 suspensions
- Biosimilar approval pathway streamlined, with 45 approvals since 2012 by 2023 following EMA/FDA guidelines
- Pharmaceutical Affairs Act amended in 2023 to fast-track innovative drugs with 6-month review for priority items
- Import tariffs on pharmaceuticals averaged 0.5% in South Korea 2023, zero for most APIs under FTAs
- 95% drug reimbursement rate under NHI for essential medicines in 2022, covering 14,000 items
- South Korea's innovative drug review time averaged 11.5 months in 2023, down 20% from 2019 reforms
- Patent linkage system enforced since 2015 protected 1,200 drugs with linkage data in 2023
Regulatory Environment and Policies Interpretation
South Korea's pharmaceutical sector is a meticulously regulated sprint, where the state swiftly approves and vigilantly monitors a flood of new medicines while firmly gripping the purse strings to keep them affordable and safe.
Sources & References
- Reference 1STATISTAstatista.comVisit source
- Reference 2KHIDIkhidi.or.krVisit source
- Reference 3MORDORINTELLIGENCEmordorintelligence.comVisit source
- Reference 4BIOSPACEbiospace.comVisit source
- Reference 5KPANEWSkpanews.co.krVisit source
- Reference 6IBISWORLDibisworld.comVisit source
- Reference 7HIRAhira.or.krVisit source
- Reference 8MARKETSANDMARKETSmarketsandmarkets.comVisit source
- Reference 9KOREABIOMEDkoreabiomed.comVisit source
- Reference 10GRANDVIEWRESEARCHgrandviewresearch.comVisit source
- Reference 11KOSTATkostat.go.krVisit source
- Reference 12MFDSmfds.go.krVisit source
- Reference 13SAMSUNGBIOLOGICSsamsungbiologics.comVisit source
- Reference 14PHARMABIZpharmabiz.comVisit source
- Reference 15CELLTRIONcelltrion.comVisit source
- Reference 16SKBIOSCIENCEskbioscience.comVisit source
- Reference 17PHARMpharm.edaily.co.krVisit source
- Reference 18KIPOkipo.go.krVisit source
- Reference 19BIOSIMILARSbiosimilars.comVisit source
- Reference 20CRIScris.nih.go.krVisit source
- Reference 21NSTnst.re.krVisit source
- Reference 22MSITmsit.go.krVisit source
- Reference 23ETNEWSetnews.comVisit source
- Reference 24KMDIAkmdia.or.krVisit source
- Reference 25CUSTOMScustoms.go.krVisit source
- Reference 26KITAkita.netVisit source
- Reference 27ECec.europa.euVisit source
- Reference 28PHARMAPHORUMpharmaphorum.comVisit source
- Reference 29UNCOMTRADEuncomtrade.orgVisit source
- Reference 30JOBKOREAjobkorea.co.krVisit source
- Reference 31KWDIkwdi.re.krVisit source
- Reference 32MOEmoe.go.krVisit source
- Reference 33NHISnhis.or.krVisit source
- Reference 34ELAWelaw.klri.re.krVisit source
- Reference 35COMTRADEcomtrade.un.orgVisit source