Korea's biohealthcare industry kept growing last year, but differences in strength by corporation size became more pronounced. In particular, unlike the improvement in results centered on large corporations, small and midsize corporations saw wider losses, deepening polarization.
According to the "fourth-quarter and annual trends of listed biohealthcare corporations in 2025" that the Korea Bio Association released on the 27th, fourth-quarter sales of domestic listed biohealthcare corporations last year rose 6.1% from a year earlier.
However, the growth was driven by domestic demand. Both pharmaceuticals (5.0%) and medical devices (15.6%) continued to grow, with domestic sales up 10.6%, leading overall growth. By contrast, exports fell 0.03%, effectively stagnating. The association said a decline in exports by large corporations in pharmaceuticals influenced the result.
In the fourth quarter, both growth and profitability slowed. The sales growth rate plunged from 19.2% a year earlier to 4.6%, and the operating margin fell from 14.8% to 5.9%. While profitability in key sectors such as pharmaceuticals and medical devices improved, overall profitability worsened due to expanded losses at small and midsize corporations.
This trend was more evident among small and midsize corporations. The operating margin of small and midsize corporations in pharmaceuticals was -180.3%, a sharp widening of losses from -24.1% a year earlier, further widening the gap by corporation size.
On an annual basis, however, the overall industry trend differed somewhat. Total sales in 2025 increased 11.0% from the previous year, with both pharmaceuticals (11.1%) and medical devices (10.3%) growing evenly. Notably, exports grew 15.9%, nearly double the growth of domestic demand (8.0%).
In pharmaceuticals, while export growth of large corporations (12.9%) held, expanded exports by mid-sized (26.2%) and small and midsize corporations (60.7%) drove the overall increase.
Profitability improved instead. The annual operating margin was 17.0%, up 2.2 percentage points from the previous year. The increase in operating profit (34.4%) by large corporations in pharmaceuticals appears to have been a key factor. However, small and midsize corporations remained in the red.
Investment in research and development (R&D) also continued to expand. R&D expenses in 2025 increased 10.7% from the previous year, with both pharmaceuticals and medical devices showing gains. In particular, development expenses by large corporations in pharmaceuticals rose 44.4%, leading the overall increase. By contrast, mid-sized (-4.4%) and small and midsize corporations (-9.7%) declined.
Employment showed a modest increase. Total headcount was 51,903, up 3.5% from a year earlier, and research and development personnel numbered 8,302, accounting for 16.0% of the total. In pharmaceuticals, R&D personnel increased 5.4%, while in medical devices they fell 15.4%, showing divergent trends.
Financial stability weakened slightly but remained generally sound. The equity ratio was 71.9%, down 3.0 percentage points from the previous year, but still above 60%.
Kim Eun-hee, head of industry statistics at the Korea Bio Association, said, "In the fourth quarter, growth driven by domestic demand stood out, and exports temporarily fell amid uncertainties over U.S. tariff policy," adding, "On an annual basis, the export recovery has continued, and the growth foundation remains intact."
She added, "While improved results and expanded exports by large corporations lifted profitability across the industry, small and midsize corporations remain in the red, widening the gap," emphasizing, "Policy support is needed to strengthen export competitiveness and improve the profitability of small and midsize corporations."
The survey analyzed 82 listed companies included in the Korea Exchange (KRX) biohealthcare industry index, based on 2025 business reports, comprehensively covering workforce, research and development expenses, sales, and financial condition.