South Korea's bio-health industry exports exceeded 6 trillion won in the first quarter of this year despite the complex crisis stemming from the Middle East war.
According to the Korea Biopharmaceutical Association on Monday, bio-health industry exports from January to March reached $4.16 billion (approximately 6.3 trillion won). On a monthly basis, March exports came in at $1.5 billion (approximately 2.3 trillion won), up 6.3% from the same month last year. February exports 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).
First-quarter performance was driven by biosimilars, the association's analysis showed. Steady expansion of biosimilar demand in major markets including the United States and the European Union fueled five consecutive months of export growth.
Experts said Korean biosimilar companies effectively targeted gaps ahead of biopharmaceutical patent expirations in the U.S. and Europe. According to the association, 90% (approximately 106 products) of biopharmaceuticals with patents set to expire in the U.S. between 2025 and 2034 have no biosimilar pipeline. The market opportunity opening during this period amounts to approximately $232 billion (approximately 350 trillion won).
In Europe, 79% of roughly 100 biopharmaceuticals with exclusivity rights expiring by 2032 currently have no biosimilars under development. The potential lost opportunity is estimated at approximately $143 billion (approximately 215.5 trillion won).
South Korea was named the country with the most U.S. Food and Drug Administration (FDA) biosimilar approvals for two consecutive years from 2024 to last year. Export volume surged 50% from approximately $980 million (approximately 1.4 trillion won) in 2021 to approximately $1.47 billion (approximately 2.2 trillion won) in 2022, showing steep growth. In April this year, biopharmaceutical exports reached $920 million (approximately 1.4 trillion won), leading overall performance.
Bio-health export growth is expected to continue this year. The association forecast exports in this sector will rise 9% from last year's record high of $27.87 billion (42 trillion won) to reach $30.4 billion (approximately 46 trillion won) this year.
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 Central and South America beyond the U.S. and Europe is anticipated. Demand for Korean biopharmaceuticals is on an upward trend in these regions. CDMO companies are also scaling up production capacity and making all-out efforts to secure more orders. Samsung Biologics (207940.KS) acquired GlaxoSmithKline's (GSK) U.S. biopharmaceutical production facility, raising its total production capacity to 845,000 liters from the existing 785,000 liters, already among the world's largest.