Korea's biopharmaceutical exports hit a record high in the first half of this year. Backed by an expansion in contract development and manufacturing organization (CDMO) orders and rising demand for biosimilar, they are maintaining growth in major overseas markets such as Europe.
The Ministery of Food and Drug Safety said on the 8th that Korea's biopharmaceutical exports in the first half of this year totaled $4.5 billion (about 6.795 trillion won). That is up 15.3% from the previous record set in the first half of last year at $3.9 billion (about 5.8952 trillion won).
Korea's biopharmaceutical exports have steadily expanded over the past three years. Annual exports grew from $4.9 billion (about 7.4073 trillion won) in 2023 to $6.5 billion (about 9.8163 trillion won) in 2024 and $7.6 billion (about 11.4889 trillion won) last year. On a first-half basis, they increased from $2.5 billion (about 3.7793 trillion won) in 2023 and $3.1 billion (about 4.6863 trillion won) in 2024 to $3.9 billion last year and $4.5 billion this year.
Biopharmaceuticals accounted for 86.5% of total drug exports of $5.2 billion (about 7.864 trillion won) in the first half of this year.
By quarter, first-quarter exports were $2 billion (about 3 trillion won), up 11.1% from a year earlier, and the second quarter was $2.5 billion (about 3.7793 trillion won), up 15.3%. Monthly exports also set record highs for each respective month, and in June, they reached $1.02 billion (about 1.5425 trillion won), surpassing $1 billion on a monthly basis for the first time.
By country, Switzerland was the largest export destination. In the first half, exports to Switzerland were $770 million (about 1.1645 trillion won), accounting for 17.1% of total biopharmaceutical exports. The United States ($610 million) and Hungary ($600 million) followed.
Exports to Switzerland increased by $310 million (67.4%) from the first half of last year. The expansion of CDMO supply by domestic corporations and rising demand for biosimilar are seen as contributing factors.
Growth was also notable across the European market. Exports to the Netherlands rose 80% year over year to $450 million (about 680.7 billion won), making it the No. 4 destination, while France entered the top 10 for the first time with $160 million (about 242 billion won).
By product, recombinant biopharmaceuticals led export growth. In the first half, exports of recombinant biopharmaceuticals were $3.97 billion (about 5.997 trillion won), accounting for 88% of total biopharmaceutical exports. That was up 18.4% from a year earlier.
The top export destinations were Switzerland ($750 million), Hungary ($600 million), and the United States ($520 million). Exports to the Netherlands rose 76% to $440 million, and growth continued in major European countries such as Italy ($250 million), Belgium ($170 million), and France ($160 million).
Exports of toxin and antitoxin products were $280 million (about 423 billion won), up 47.4% year over year. The United States was the largest destination at $70 million (about 105.7 billion won), followed by China ($60 million) and Brazil ($30 million).
In contrast, vaccine exports were $120 million (about 181.2 billion won), down 27.4% year over year. Major destinations were in Southeast Asia and Africa, including Thailand, Bangladesh, Nigeria, Colombia, and Mozambique.
The Ministery of Food and Drug Safety plans to expand support systems for the CDMO industry to strengthen the global competitiveness of domestic biopharmaceuticals.
The Special Act on Regulatory Support for Biopharmaceutical Contract Development and Manufacturing corporations, enacted in Dec. last year, is scheduled to take effect in Dec. this year. After the law takes effect, the introduction of an export manufacturer registration system will provide a basis for CDMO corporations targeting exports to pursue entry into global markets without a drug manufacturing license.
They also plan to promote certification of domestic biopharmaceutical raw materials to enhance manufacturing and quality reliability and strengthen international competitiveness.
Ahn Young-jin, director general of the Biologics and Herbal Medicines Bureau at the Ministery of Food and Drug Safety, said, "We will help safe treatments reach the global market quickly through innovations in approval and review processes for new drugs and biosimilar and regulatory support throughout the product life cycle," adding, "We will actively pursue regulatory diplomacy with major export destinations to support the overseas expansion of domestic biopharmaceuticals."