Biohealth Industry Sets $30.4 Billion Export Target for This Year... 230 Billion Won Budget Allocated

1. New 150 Billion Won Fund for Phase 3 Clinical Trials to Spur Investment
2. Expansion of Global Hubs in the US and Europe
3. Proactive Measures for Supply Chain Stabilization and Regulatory Barriers

The government has set this year's export target for the biohealth industry at a record high of 30.4 billion dollars (approximately 40 trillion won), and to achieve this goal, it will more than triple the related support budget compared to last year, investing 230 billion won.

On March 3, the Ministry of Health and Welfare held a meeting with companies at City Tower in Jung-gu, Seoul, presided over by Second Vice Minister Lee Hyunghoon, where it announced the "2026 Biohealth Outlook and Export Promotion Support Plan." Twelve exporting companies from the pharmaceutical, bio, medical device, and cosmetics sectors attended the event, including Samsung Biologics, GC Green Cross, HK inno.N, Alteogen, CGBio, VUNO, Mirae Company, WONTECH, Olive Young, COSMAX, Gudai Global, and Lillycover.

Last year, total exports in the biohealth industry-including pharmaceuticals, medical devices, and cosmetics-amounted to 27.9 billion dollars, up 10.3% from the previous year. This placed the sector eighth among major domestic industries, and it is seen as a remarkable achievement given the uncertainties of the global economic environment, such as tariffs.

By segment, pharmaceuticals saw significant year-on-year growth, reaching 10.4 billion dollars, the highest ever. In particular, biopharmaceuticals, which account for more than 60% of total pharmaceutical exports, stood out by expanding their market share in advanced markets such as the United States and Europe. As a result, export volume has increased by about tenfold compared to 2015.

Cosmetics also hit a new record for exports, totaling 11.4 billion dollars, up 12.2% from the previous year (10.2 billion dollars). Notably, the top export destination shifted from China to the United States, marking successful market diversification, while steady growth was also recorded in Southeast Asia, the Middle East, and Europe.

Building on these visible results, the government plans to invest 233.8 billion won this year, a 3.5-fold increase from last year's 68.5 billion won, aiming to strengthen the competitiveness of the biohealth industry through investment promotion and supply chain reinforcement.

First, a specialized fund worth 150 billion won will be newly established to support Phase 3 clinical trials, which incur the highest costs in new drug development. In addition, the government will continue to create a mega fund totaling 1 trillion won, and inject over 1 trillion won into national healthcare research and development (R&D) to serve as a catalyst for private investment. A comprehensive stabilization system will also be implemented, including support of 10 billion won for 10 companies to stabilize the supply of new bio raw materials and components.

Tailored strategies for expanding export territories will be pursued by category. In the pharmaceutical and bio sectors, the "K-Biopharma Next Bridge" initiative will be introduced to connect global leading companies such as Roche, Amgen, and Novo Nordisk with promising domestic technology firms. In addition, support for Korean companies entering the CIC in Boston, USA, will be expanded to 40 firms to strengthen a bridgehead into the world’s largest market.

The government will also support the swift commercialization of innovative products such as ultrasound and imaging diagnostic devices incorporating artificial intelligence (AI). In particular, it will newly support the entry of 10 companies into a biocluster in Houston, USA, and launch new education and training programs that provide overseas medical professionals with hands-on experience using Korean devices.

For cosmetics, new "K-Beauty Flagship Hubs" will be launched in New York and Paris, the centers of global fashion and beauty. Dedicated logistics bases will be established in eight regions across the United States to significantly reduce the delivery and logistics burden for small and medium-sized enterprises. Consulting for over-the-counter (OTC) manufacturing facility registration, which is essential for US exports, will begin, and a "Cosmetic Ingredient Integrated Information System" will be launched to provide real-time, country-specific regulatory information.

Vice Minister Lee stressed, "With Korea’s world-leading contract manufacturing capabilities and the explosive popularity of K-beauty, demand is surging for Korean biopharmaceuticals, medical aesthetic devices, and cosmetics. The government will actively support the biohealth industry so it can grow into a major export sector and become the next key driver of the Korean economy, following semiconductors."

This content was produced with the assistance of AI translation services.