Korea’s pharmaceutical exports set to top $10 bn, led by ‘K-M7’ champions

South Korea’s pharmaceutical exports are on course to surpass $10 billion this year, underscoring the country’s growing clout in the global biotechnology market as companies like Samsung Biologics Co. and Celltrion Inc. extend their international reach.

According to the Ministry of Trade, Industry and Energy, exports of pharmaceutical products between January and April reached $3.62 billion, a 17.7% increase from the same period a year earlier.

Based on the first-quarter performance, total pharmaceutical exports for 2025 are forecast to hit a record $10.8 billion.

The surge has been propelled largely by booming overseas demand for biosimilars, especially in Europe.

Biosimilars are products that have been demonstrated to be similar in efficacy and safety to the originator’s reference product, with the advantages of cost savings and promoting sustainable access to therapies.

According to Korean alternative data platform KED Aicel on Monday, Korea exported $612 million worth of biopharmaceuticals in April, a 24.5% jump from a year earlier.

Germany and Italy posted particularly strong growth, with Korean shipments to the two countries reaching $175 million and $29.2 million, up 89.7% and 77%, respectively.

MAGNIFICANT SEVEN

The rapid rise has been spearheaded by a cohort of leading drugmakers, including Samsung Biologics, Celltrion, SK Biopharmaceuticals, GC Biopharma, Yuhan Corp., Daewoong Pharmaceutical Co. and Dongwha Pharm, which local analysts have dubbed the “K-M7”, a play on the “Magnificent Seven” moniker used to describe dominant US Big Tech stocks.

The strong export performance reflects not only increased demand but also a series of high-value licensing deals signed by Korean firms.

According to the Korea Pharmaceutical and Bio-Pharma Manufacturers Association, domestic companies clinched 15 technology export contracts worth 8 trillion won ($5.8 billion) last year.

In the first four months of this year, Korean biotech and pharmaceutical firms have clinched five deals worth 7 trillion won.

FIVE PROMISING CONSUMER GOODS

According to the Korea Health Industry Development Institute, Korea’s pharmaceutical exports hit a record $9.27 billion in 2024.

Should this year’s figures cross the $10 billion threshold, pharmaceuticals would become the third of the government’s five designated “high-potential consumer goods” – alongside agricultural and fisheries goods and cosmetics – to reach that milestone.

In 2016, the Korean government designated agricultural and fisheries goods, cosmetics, fashion and apparel, baby goods and pharmaceuticals as the country’s five promising consumer goods.

“The global competitiveness of domestic manufacturers is translating into more diversified export markets,” said a local pharmaceutical industry executive. “The fact that these gains come amid intensifying global competition makes the current momentum even more significant.”

Write to Tae-Ho Lee and Dae-Hun Kim at thlee@hankyung.com
In-Soo Nam edited this article.