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South Korea has emerged as a highly attractive market for foreign pharmaceutical companies, offering substantial opportunities for growth, innovation, and global expansion.
The country’s pharmaceutical industry has experienced remarkable progress, driven by a combination of market expansion, government support, and advanced Regulatory frameworks.
Here’s why South Korea represents a strategic destination for pharmaceutical investments and collaborations.
1. Rapid Market Growth
The South Korean pharmaceutical market is projected to grow from $23.19 billion in 2025 to $26.11 billion by 2030, with a 2.4% CAGR over the forecast period.
This steady expansion offers valuable opportunities for foreign pharmaceutical companies aiming for long-term market stability and revenue growth.
2. High R&D Investment
Global pharmaceutical companies are increasingly channeling investments into drug development and R&D in South Korea, reinforcing its status as an innovation-driven economy.
In fact, in 2020, South Korea spent 93.1 trillion won (USD 75.4 billion) on R&D, accounting for 4.81% of its GDP, showcasing its commitment to advancing the pharmaceutical sector. These investments in R&D are expected to foster new treatments, particularly in areas like oncology and neurology, positioning South Korea as a leader in medical innovation.
3. Strong Government Support
Recognizing the potential of the pharmaceutical and bio industries, the South Korean government has prioritized them as key growth sectors.
With significant investments in new drug R&D, specialized training programs, and support for international market entry, the government fosters an environment conducive to industry expansion and global competitiveness.
Moreover, government-led awareness programs for chronic diseases, such as the Global Breast Cancer Conference 2023 (GBCC 2023), help boost demand for pharmaceuticals, particularly in oncology. These initiatives further strengthen the country's position as an attractive destination for pharmaceutical companies.
4. Advanced Regulatory System
South Korea has actively advanced its Regulatory framework, aligning with international standards and facilitating efficient drug approvals.
Cooperation with global regulatory agencies enables the rapid introduction of medicines, making South Korea a preferred market for foreign pharmaceutical companies seeking streamlined market entry.
5. Clinical Trials and Innovation Hub
With a strong focus on clinical research, South Korea conducts a wide range of clinical trials across multiple disease areas.
This fosters innovation, accelerates drug development, and provides an ideal setting for foreign pharmaceutical firms to engage in clinical research collaborations.
6. Rising Demand for Advanced Treatments
With a growing emphasis on life extension and improved quality of life, South Korea has a high demand for advanced medical treatments.
As the population ages and the incidence of chronic diseases continues to rise, South Korea offers foreign pharmaceutical companies a significant opportunity to introduce novel therapies and meet the healthcare needs of the country.
How Freyr Can Help
Expanding into South Korea’s pharmaceutical market requires deep understanding of its Regulatory frameworks, healthcare system, and business culture.
Freyr, a global regulatory solutions provider, offers end-to-end support—from compliance consulting to market authorization—ensuring seamless entry. With deep expertise in South Korea’s evolving landscape, Freyr empowers companies to establish a strong presence in this high-growth market.
