South Korea's bio-health industry surpassed 6 trillion won in exports during the first quarter of this year, cruising ahead despite the complex crisis stemming from the war in the Middle East.
Exports from the bio-health sector reached $4.16 billion (approximately 6.3 trillion won) from January to March, according to the Korea Biopharmaceutical Association on the 5th.
On a monthly basis, March exports came in at $1.5 billion (approximately 2.3 trillion won), up 6.3% from the same month a year earlier. February rose 7.1% to $1.31 billion (approximately 2 trillion won). January exports grew 18.3% to $1.35 billion (approximately 2.035 trillion won).
Biosimilars — copies of biologic drugs — drove the first-quarter performance, the association said. Steady expansion of biosimilar demand in major markets including the United States and the European Union fueled five consecutive months of export growth.
According to the association, the U.S. currently has no biosimilar pipeline for 90%, or roughly 106, of the biologic drugs whose patents are set to expire between 2025 and 2034. The market opportunity opening during that period amounts to approximately $232 billion (approximately 350 trillion won).
Europe faces a similar gap. About 79% of the roughly 100 biologic drugs whose exclusivity rights expire by 2032 currently have no biosimilar in development. The potential lost opportunity is estimated at approximately $143 billion (approximately 215.5 trillion won).
South Korea is successfully capitalizing on this blue ocean, observers say.
Korea was named the country with the most U.S. Food and Drug Administration biosimilar approvals for two consecutive years from 2024 through last year. Export volumes also showed steep growth, surging roughly 50% from approximately $980 million (approximately 1.4 trillion won) in 2021 to approximately $1.47 billion (approximately 2.2 trillion won) in 2022. In April this year, biopharmaceutical exports reached $920 million (approximately 1.4 trillion won), continuing to lead overall performance.
The bio-health export growth trend is expected to continue throughout this year. The association forecast that exports in the sector will reach $30.4 billion (approximately 46 trillion won) this year, a 9% increase over last year's record high of $27.87 billion (42 trillion won).
Key growth drivers include export diversification and strengthened contract development and manufacturing organization (CDMO) competitiveness. Expansion into emerging markets such as the Middle East, Africa, and Latin America — beyond the U.S. and Europe — is anticipated. Demand for Korean biopharmaceuticals is on the rise in these regions. CDMO firms are also ramping up production capacity and concentrating efforts on securing new orders.
Samsung Biologics (207940.KS) acquired GlaxoSmithKline's biopharmaceutical production facility in the United States, boosting its total production capacity to 845,000 liters from its existing world-leading 785,000 liters.