Korean pharmaceutical and biotech corporations are accelerating investment in production facilities. As price cuts and regulatory changes increase revenue volatility, the moves are seen as a strategy to secure facilities in advance to support core products and next-generation pipelines. After proving capabilities through clinical trials and technology transfers, supply capacity ultimately determines competitiveness, leading to a push to build production strength ahead of global orders.
According to the industry on the 5th, major drugmakers including Dong-A Socio Holdings, Chong Kun Dang pharmaceutical, and Boryung are moving to expand production facilities. The investments focus on structurally boosting capacity around each company's strategic items, such as biopharmaceuticals, antibody-drug conjugates (ADC), and national essential medicines. Observers say the decisions aim to secure medium- to long-term supply capabilities beyond shoring up short-term results.
STgen Bio, the biopharmaceutical affiliate of Dong-A Socio Group, recently invested 110 billion won to expand its first plant. STgen Bio is the global production base for IMULDOSA, a biosimilar to the autoimmune disease treatment "Stelara," developed by Dong-A ST. Powered by global commercialization, IMULDOSA posted 103.7 billion won in sales last year. The company plans to expand drug substance (DS) and drug product (DP) facilities to increase annual capacity from the current 9,000 liters (ℓ) to 14,000ℓ by the first quarter of 2028.
Another Dong-A Socio Group affiliate, ST Pharm, completed its "Second Oligo Building" at the Banwol campus in Ansan, Gyeonggi Province, last year and began pursuing more global orders. ST Pharm focuses on oligonucleotide CDMO, a key raw material for RNA medicines, and the latest expansion more than doubled production capacity to 14 mol (2.3–7 tons).
Kyongbo Pharmaceutical, a subsidiary of Chong Kun Dang pharmaceutical, has designated the Antibody-Drug Conjugate (ADC) CDMO business as a future growth driver. It is building a plant in Asan, South Chungcheong Province, with an investment of 96 billion won, the largest since its founding. Starting at the end of 2027, it plans to produce phase 1, 2, and 3 clinical samples and ADC finished goods, establishing a supply system that spans from preclinical to commercialization.
Boryung will invest 30 billion won to expand essential medicine production facilities at its Ansan campus. The site is a hub for oral penicillin antibiotics, which the Ministery of Food and Drug Safety designated as "national essential medicines" in 2023. Boryung currently handles more than 60% of domestic contract supply volumes. With this investment, the company will expand the facility by more than 50%, from a total floor area of 840 pyeong (about 2,800㎡) to 1,320 pyeong (about 4,400㎡), and more than double annual capacity (CAPA).
Corporations developing long-acting injectables for "once-a-month" obesity treatments have also moved to expand facilities. As joint research with global companies grows, the ability to mass-produce immediately after clinical success is seen as a factor that determines competitiveness. In a market led by GLP-1 therapies, securing not only technological prowess but also production capacity is emerging as a key factor.
Peptron obtained approval last December to build a new plant on a 5,000-pyeong idle site within the Osong BioPark in North Chungcheong Province and is preparing to break ground. The total investment is 89 billion won. The new plant will be designed to meet the U.S. Food and Drug Administration's current good manufacturing practice (cGMP) standards and will handle commercial production of key pipelines, including a one-month depot prostate cancer treatment and treatments for diabetes, obesity, and Parkinson's disease, all using the SmartDepot platform that extends peptide dosing intervals to 1–6 months.
G2GBIO raised 150 billion won this month, kicking off full-scale construction of its second GMP plant. Of that, 60 billion won will go toward a commercial production facility in Osong, North Chungcheong Province. The company is currently building its first plant specializing in long-acting microparticle injectables within the Osong Bio Cluster, and aims to break ground on the second GMP plant within the year and complete it by 2027.
Inventage Lab acquired CDMO company Quratis in February last year, securing dedicated GMP facilities for long-acting injectables at the Osong Bio Plant. By applying its in-house drug delivery platform "IVL-DrugFluidic," the company has established a system capable of handling everything from clinical sample production to commercialization at the same site.
An industry official said, "When global drugmakers select partners these days, they first look not only at technology but also at the timing of commercial production and the actual supply volume," adding, "corporations with facilities capable of immediately ramping up to mass production after clinical success will ultimately have the upper hand in order competitions."