Domestic pharmaceutical and bio corporations as well as medical device corporations have successively entered the Central and South American market. The population of Central and South America reaches about 670 million, and the self-sufficiency rate of pharmaceuticals and medical devices is low, making it a favorable market for Korean corporations. In Brazil, it is considered one of the top three cosmetic medical markets along with the United States and China. The fact that Central and South American countries have lowered regulatory barriers to improve their own healthcare standards is also helping Korean corporations enter the market.
◇Targeting local markets with customized marketing with partners
Hanmi Pharmaceutical signed an export contract with the Mexican pharmaceutical company Silanes and launched 'Gugutams' last month. Gugutams is a combination medicine for urological diseases developed by Hanmi Pharmaceutical, combining the benign prostatic hyperplasia treatment agent tamsulosin and the erectile dysfunction treatment agent tadalafil. It applied the 'Poly-Cap' technology that combines various active ingredients into one capsule for the first time in domestic prescription medicine.
Hanmi Pharmaceutical fully entered the Central and South American market from 2023. Hanmi Pharmaceutical partnered with the local pharmaceutical company Silanes and first launched the hypertension and hyperlipidemia combination medicine 'Amozelan Q.' Subsequently, in 2024, they introduced the hypertension combination medicine 'Amozelan Plus' to the Central and South American market. A Hanmi Pharmaceutical official noted, 'We are focusing on expanding partnerships in growth markets like the Middle East and Central and South America, beyond North America and Japan, and on expanding the range of collaborative products using these as footholds.'
SK bioscience received prior notification from the Pan American Health Organization (PAHO) in February to supply its self-developed chickenpox vaccine 'Sky Varicella' to the Central and South American region by 2027. The company won a supply contract by participating in PAHO's bidding process for integrated procurement in the Central and South American region. SK bioscience succeeded in its first contract in the chickenpox vaccine bidding process with PAHO in 2022 and has been supplying steadily to Central and South America for the past three years.
Domestic pharmaceutical companies are entering the Central and South American market by signing contracts with local partner pharmaceutical companies. This is advantageous for increasing market share as they are well-acquainted with local systems and have established sales and marketing infrastructure. Daewoong Pharmaceutical first contracted with the Brazilian partner Moksha8 in 2018 to export the wrinkle improvement product Botulinum toxin 'Nabota.'
Daewoong Pharmaceutical announced last month that it has newly signed an export contract worth 180 billion won with Moksha8. This scale is about 10 times larger than the previous contract. According to the company, Moksha8 targeted the dental and aesthetic (skin care) hospitals rather than dermatology or plastic surgery, where other botulinum toxins had already entered the market at the early stage of Nabota's local launch, thus increasing its market share.
HK inno.N has entered 18 Central and South American countries through technology export or finished goods export with the new drug for gastroesophageal reflux disease 'K-Cap' (local product name K-Cap). The company chose 'Carnot' as a partner for 17 Central and South American markets excluding Brazil. HK inno.N held an academic conference for medical professionals in Central and South America in collaboration with Carnot to enhance awareness and trust in K-Cap.
◇Regulatory easing and tariff benefits help market entry
The export of Korean medical device corporations to Central and South America is also achieving significant results. According to a report titled 'Analysis of Strategic Items and Markets for Medical Devices' published by the Korea Trade-Investment Promotion Agency (KOTRA), the export amount of medical devices to Brazil over the past five years increased from $62 million in 2019 to $185 million in 2023, showing an annual average increase of 34.4%.
The medical beauty device corporation CLASSYS announced that its sales in Brazil account for 27% of its overseas sales. Brazil has the highest consumption of botulinum toxin in the Central and South American region, indicating a strong demand for cosmetic procedures and treatments. Therefore, increasing brand awareness in Brazil is crucial for entry into surrounding Central and South American countries.
CLASSYS plans to expand the launch of its flagship products 'Shrink Universe' and 'Volumor' in Central and South American countries other than Brazil. The orthopedic implant specialist CG MedTech also expanded its market to Puerto Rico, the Dominican Republic, Nicaragua, and Peru last year. The company's main products are spinal and cervical fixation devices and cages, commonly used in orthopedic surgeries.
Domestic medical AI corporations, including Lunit, VUNO, JLK, and Coreline Soft, are also actively targeting local markets by obtaining product approvals in Central and South American countries. Many countries in Central and South America have poor medical infrastructure, creating a growing demand for products that quickly and accurately diagnose diseases using AI.
The lowering of medical regulatory barriers by Central and South American countries is also facilitating the entry of Korean corporations. The Argentine food and drug administration simplified the registration process for Korean medical devices starting in 2023. Mexico announced new Good Manufacturing Practices (GMP) guidelines on the 20th, agreeing to recognize GMP certifications issued by regulatory agencies in Brazil, Argentina, Canada, Colombia, Chile, Cuba, and the United States.
Tariff benefits are also favorable conditions. Chile's general tariff rate is 6%, but under the Korea-Chile Free Trade Agreement (FTA), pharmaceuticals exported receive a duty-free benefit. Over the past 20 years, trade volume between the two regions has increased more than fourfold, and Korea's direct investment in Central and South America has grown approximately 16 times.