K-bio poised for golden era with 20% annual growth

(MK DB)

South Korea’s pharmaceutical and biotech sector is preparing for a global leap, with research and development capabilities, manufacturing capacity and clinical ecosystems now largely in place.

Global experts, big pharma companies and investors are increasingly turning their attention to Korea, predicting that 2026 will mark the first full year of K-bio’s global expansion. They advise the government to ease regulations and provide investment support to avoid missing the critical “scale-up” phase — the transition from laboratory validation to mass production.

According to the Korea Pharmaceutical and Bio-Pharma Manufacturers Association (KPBMA), disclosed technology exports by the pharma and biotech sector totaled $14.53 billion this year, equivalent to 21 trillion won, up about 162 percent from a year earlier. Although the number of deals fell to 17 — about half the 2021 peak of 34 — the total value increased as more large-scale contracts exceeding 1 trillion won were signed.

South Korea ranked third among 22 countries in the “Global Pharmaceutical and Biotechnology Industry Index” published by global life sciences company Cytiva, climbing nine spots from 12th place in 2023. Market research firm Technavio forecasts South Korea’s bio market to post a compound annual growth rate of 15–20 percent between 2025 and 2029.

“There is no reason Korea cannot achieve a great ‘zero-to-one’ breakthrough,” said Matt Kim, head of U.S. Biotech based in New York in the Global Healthcare Investment Banking Group at Jefferies.