Korean pharmaceutical and biotech corporations are reorganizing their research and development (R&D) units and speeding up talent recruitment. It is part of strategies to secure medium- to long-term growth engines and expand into global markets, and with the government's recent drug pricing policy, some corporations are seen moving beyond simple headcount additions to undertake structural shifts aimed at changing their organizational makeup.
◇ Battle for experienced hires…R&D talent moves accelerate
On the 7th, according to the pharmaceutical and biotech industry, Dong-A Pharmaceutical Co., Boryung, Samjin Pharmaceutical, BCWorld Pharm, and IMBiologics have recently expanded hiring for experienced roles in R&D, global regulatory affairs, and marketing.
Domestic corporations are also hiring experienced workers more actively than entry-level employees, a trend that industry officials said reflects a focus on securing "immediate strength."
Recruitment and movement of outside leaders are also continuing. It is an attempt to place external experts at the forefront to boost research competitiveness.
This month, SK bioscience reorganized its research unit and hired Executive Vice President Ma Sang-ho. Ma is an expert in pharmaceuticals and vaccine R&D, having worked at the Korea Health Industry Development Institute (KHIDI), GC Biopharma, and JW Pharmaceutical.
Ildong Pharmaceutical hired President Park Jae-hong, who oversaw R&D at Dong-A ST, as the new head of R&D (president). After earning bachelor's and master's degrees in biotechnology from Yonsei University and a doctorate from Boston University School of Medicine in the United States, Park worked as a researcher at Harvard Medical School. It is the first case in which the company, which had focused on internal promotions, put an external expert fully at the forefront.
In particular, Ildong Pharmaceutical has undertaken structural reorganization by first downsizing and then expanding its research unit. After spinning off the R&D institutional sector in 2023 to establish Yunovia, its research staff shrank from the 300s to about 50, but later increased again to 148 in line with pipeline progress. The organization also expanded from 10 teams to 16, establishing a system that covers the entire new drug development cycle, including clinical development, formulation research, and quality control.
By bringing in President Park Jae-hong as Deputy Minister of R&D and elevating the unit to report directly to the president, the company is seen shifting to "commercialization-driven R&D," with an eye to new drug commercialization and global technology transfer.
Myung In Pharm has expanded external hiring since its KOSPI listing. In particular, it shifted to a professional management-centered structure by establishing a two-top system with CEO Lee Gwan-soon, who previously served as president and CEO of Hanmi Pharmaceutical, and President Cha Bong-kwon, who joined as the first cohort of open recruits at Myung In Pharm in 1990.
It has also accelerated changes in how the organization is run by placing outside hires in key posts such as production, quality, and research and development. However, the sales unit remains led by insiders to maintain the existing revenue structure, reflecting a phased change strategy.
Dongwha Pharm also hired Executive Director Jang Jae-won, who worked at Hanmi Pharmaceutical, Ilhwa, Yuyu Pharma, and Daewoong Pharmaceutical, as head of the research and development division. With Jang's move leaving the head of development at Yuyu Pharma vacant, Executive Director Ryu Hyun-ki, who worked at Kwangdong Pharmaceutical, Kyungnam Pharm, and Pharmbio Korea, newly joined the post.
◇ Pressure for structural shifts amid drug price cuts…a fight for global talent
Some say this trend is intertwined with changes in the policy environment. Recently, the Ministry of Health and Welfare approved a reform plan to cut the reimbursement rate for generic drugs from 53.55% to 45%. It is intended to reduce medical costs and induce a shift from a generic-centered structure to one focused on new drug development.
As a result, drugmakers face a situation where growth is difficult unless they strengthen both R&D and global business capabilities. An industry official said, "In the past, sales and manufacturing were the competitive edge, but now R&D and global capabilities determine corporations' value, so we are reinforcing personnel and reorganizing accordingly."
Competition to secure talent for entering global markets and expanding contract wins is also fierce.
Medytox hired Executive Director Lee Tae-sang as head of the clinical development division. Lee worked at Janssen Korea for more than 20 years, overseeing the entire global clinical development cycle and leading U.S. and European approvals.
Samsung Biologics expanded its MSAT (Manufacturing Science and Technology) organization and hired Executive Director Bram ten Cate, formerly of Germany's BioNTech.
MSAT is an organization that transfers R&D-stage processes stably to actual production sites and works to improve production yield and quality.
As of last year, Samsung Biologics had 609 dedicated research staff, including 297 MSAT personnel. Last year, the company also hired Diane Black, formerly of U.S.-based Jazz Pharmaceuticals, as executive vice president (EVP) and chief quality officer (CQO) to oversee its Quality Management Center.
Samsung Epis Holdings, launched last year, has a total of 620 staff dedicated to R&D. Of these, 158 hold doctorates and 237 hold master's degrees.
Celltrion increased headcount in the research and development institutional sector by 92 last year from a year earlier. The company's research and development organization is divided into the following: △ the research and development institutional sector, which develops drugs and processes; △ the product development institutional sector, which handles clinical trials, approvals, and responses to regulators; and △ the Data Science Research Institute, which performs data collection and analysis. It increased headcount in the research and development institutional sector by 89 from a year earlier. According to last month's business report, the total research and development staff is 801 (69 with doctorates, 390 with master's degrees).
Hwang Ju-ri, head of external cooperation at the Korea Biotechnology Industry Organization, said, "For domestic corporations, securing talent with global clinical and regulatory experience is important, but the talent pool is limited," and suggested, "For the future growth of Korea's pharmaceutical and biotech industries, talent development policies at the national level also need to be in place."