A report released on Tuesday analyzed the export structure of pharmaceuticals and strategies to boost export competitiveness.
The Korea International Trade Association (KITA) revealed that South Korea’s pharmaceutical exports have grown by an average of 2.7% annually over the past decade, reaching 880 million USD last year.
The study found that volume was the primary driver of export growth, contributing 130.7%, followed by product mix (2.9%) and price effects (-33.6%). This suggests that increased sales of existing products, rather than price hikes, fueled overall export growth.
By product category, the export share of common treatments like cold and allergy medications increased from 68.1% in 2016 to 77.6% in 2025. However, exports of antibiotics and hormone treatments declined by 10 and 0.1 percentage points respectively, indicating limited product diversification.
Geographically, exports to middle-income countries, including China, Association of Southeast Asian Nations (ASEAN) nations, and Latin America, rose from 55.6% to 60.9%, while those to high-income countries fell from 43.4% to 37.7%. This trend contrasts with the global pharmaceutical import market, where high-income regions like Europe, the Middle East, and the U.S. increased their share from 83.4% in 2015 to 84.6% in 2024.
The report concluded that to maintain a competitive edge, South Korea’s pharmaceutical industry must shift from its current focus on existing markets and products to a high-value-added portfolio, especially given recent shifts in the global pharmaceutical landscape.
It stressed the importance of maintaining a stable export base in common treatments and middle-income markets while gradually expanding into high-income countries and technologically advanced products.
The report recommended several strategies, including: identifying and addressing production bottlenecks; providing technical support for overseas approvals; expanding artificial intelligence (AI) implementation in manufacturing and quality control; developing market-specific products with improved formulations and ease of use; enhancing market intelligence on local demand and regulatory challenges; and supporting gradual entry into Islamic markets through halal certification.
Notably, the report highlighted that pharmaceuticals are increasingly exhibiting characteristics similar to consumer goods, where brand image and consumer perception significantly influence purchasing decisions. It emphasized the need for the government’s K-Consumer Goods Export Boosting Policy to provide comprehensive support from production and quality enhancement to regulatory compliance and market establishment.
Kim Moo-hyun, a senior researcher at KITA, stated that the pharmaceutical sector has the potential to become a key export driver, much like K-Food and K-Beauty. However, growth has largely been driven by increased volumes of generic products. With technological advancements from pharmaceutical companies and comprehensive government support, it can establish K-Pharmaceuticals as a unique and indispensable presence in the global market.