Korea Innovative PHARMACEUTICAL Company Potential of Pharmaceutical Industry in Korea
2018 Korea Innovative PHARMACEUTICAL Company Potential of Pharmaceutical Industry in Korea Aging populations and growing interest in health and welfare continue to drive up the demand for innovative drugs across the world. Globally, R&D spending in the pharmaceutical industry was higher than any other industry (pharmaceutical and bio ranked No. 1 with 150 billion dollars(2015)), indicating that the future industrial structure is shifting from IT to pharmaceutical business. Pharmaceutical Industry in Korea In Korean, the value of drugs manufactured in Korea was KRW 18.8 trillion in 2016. The annual average growth rate for the past five years was 4.6 percent. In addition, the size of the pharmaceutical market was KRW 21.7 trillion in 2016. Size and Market Trends in Pharmaceutical Industry in Korea (Unit: KRW Trillion) Category Production Export Import Balance Market size 2012 157,140 23,409 58,535 △35,126 192,266 2013 163,761 23,306 52,789 △29,483 193,244 2014 164,194 25,442 54,952 △29,510 193,704 2015 169,696 33,348 56,016 △22,668 192,364 2016 188,061 36,209 65,404 △29,195 217,256 YOY 10.8% 8.6% 16.8% - 12.9% CAGR(’12~’16) 4.6% 11.5% 2.8% - 3.1% Note: 1) Pharmaceutical products include finished products, narcotic drugs, ultra narcotic, psychotropic substance and drug substance 2) Numbers in export and import categories are calculated in Korean won and converted US dollar by using annual average exchange rate at Bank of Korea 3) Market Size= Production-Export+Import Source: Pharmaceutical Industry Statistics, Korea Pharmaceutical and Bio-Pharma Manufacturers Association Facts & Survey Report, Korea Pharmaceutical Traders Association, Korea Health Industry Statistics System Based on its technological competitiveness and quality drugs, the pharmaceutical industry in Korea has taken a stride in strengthening its ability to develop innovative drugs in a short period of time, including R&D, clinical trials and drug manufacturing.
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