South Korea Pharmaceuticals Market Size, Share & Industry Analysis, By Type (Drugs & Vaccines), By Disease Indication (Oncology, Diabetes, Infectious, Cardiovascular, Neurology & Psychiatry, Respiratory, Renal, Obesity, Autoimmune, Ophthalmic, Gastrointestinal, Dermatology, Hematology/Blood, Liver/Hepatology, Genetic, Hormonal/Endocrine, Women’s Health, Reproductive, & Allergies), By Drug Type (Biologics & Biosimilars, & Small Molecules/Conventional Drugs), By Route of Administration (Oral, Parenteral, Topical, & Inhalation), By Age Group, By Distribution Channel, & Country Forecast, 2025-2032

The South Korea pharmaceuticals market size was valued at USD 27.00 billion in 2024. The market is projected to grow from USD 29.20 billion in 2025 to USD 53.97 billion in 2032, exhibiting a CAGR of 9.17% during the forecast period.

The market is poised to grow at a significant CAGR during the forecast period owing to increasing research and development activities and strategic collaborations for drug discovery. Along with these factors, government support and favorable government regulations are anticipated to further drive the growth of the market.

• For instance, in June 2025, South Korea launched an ambitious suite of pharmaceutical regulatory reforms designed for accelerating drug approvals and fostering innovation. The reforms are also aimed at improving patient access to essential medicines and taking bold steps to modernize the country’s processes and harmonize its systems with international benchmarks.

South Korea Pharmaceuticals Market Trends

Increasing Clinical Trials Eyeing the Potential of the Market is a Prominent Trend

The country’s pharmaceutical industry is witnessing increasing clinical trials coupled with government support. The government established ecosystems such as KoNeCT to facilitate the clinical data. Additionally, South Korea emerged as a hotspot for clinical trials due to various benefits such as a high population density of patients and advanced hospitals concentrated in cities. Such factors are helping pharmaceutical companies expand their footprints in South Korea for clinical trials and research studies.

• For instance, in March 2024, Tium Bio applied for a New Drug Application by the Korean Ministry of Food and Drug Safety for a Phase IIa clinical trial for an oral immuno-oncology drug TU2218, intended to treat cancer.

South Korea Pharmaceuticals Market Growth Factors

Strategic Collaborations for New Product Launches to Drive Market Growth

The increasing prevalence of chronic diseases in the region, driving product demand, has created unprecedented growth opportunities. Various key operating players are participating in strategic activities such as collaborations to expand their product offerings and enhance their operational efficiency, boosting the potential for South Korea pharmaceuticals market growth.

• For instance, in March 2025, Daewoong Pharmaceutical launched Celltrion’s Stoboclo (CT-P41), a biosimilar to Amgen’s Prolia (denosumab). The company collaborated with Celltrion to promote Celltrion’s denosumab biosimilars in Korea.
• Similarly, in June 2025, Ono Pharmaceutical Co., Ltd., collaborated with Vertex Pharmaceuticals Incorporated for the development and commercialization of the company’s povetacicept for the treatment of immunoglobulin A nephropathy (IgAN), in Japan and South Korea. Such developments are likely to drive the growth of the market.

South Korea Pharmaceuticals Market Restraints

High Dependency on Pharmaceutical Exports Can Limit Industry Growth

The South Korea market relies heavily on the international market for pharmaceutical exports and has witnessed increasing exports. This factor exposes the risk of foreign regulatory differences and competitive risk. Such factors can limit the growth potential of the market over the forecast period.

• For example, in December 2023, CEIC Data reported that South Korea's Exports of medicinal and pharmaceutical products were worth USD 8,582.1 million, with a staggering growth rate of 1% from the previous year.
• Similarly, in May 2025, the U.S. implemented 25.0% tariff duties on various products of South Korea, including biopharmaceuticals.

South Korea Pharmaceuticals Market Segmentation Analysis

By Type Analysis

Positive Regulatory Scenario to Bolster the Highest CAGR of the Vaccines Segment

Based on type, the market is divided into drugs and vaccines.

The vaccines segment is projected to grow at the highest CAGR over the forecast period. The vaccines segment is further distributed into viral and bacterial. These vaccines prevent various infectious diseases and provide a wide range of protection against these microorganisms. The vaccination drives conducted by the government for enhancing public health are anticipated to boost the segment growth.

• For instance, in March 2025, the Korea Disease Control and Prevention Agency implemented free vaccinations for the 20-valent pneumococcal conjugate vaccine (PCV20) as a part of the national immunization program (NIP).

By Disease Indication Analysis

Rising Demand for Cancer Therapeutics to Drive the Dominance of the Oncology Segment

Based on disease indication, the market is segmented into oncology, diabetes, infectious, cardiovascular, neurology & psychiatry, respiratory, renal, obesity, autoimmune, ophthalmic, gastrointestinal, dermatology, hematology/blood, liver/hepatology, genetic, hormonal/endocrine, women’s health, reproductive, allergies, and others.

The oncology segment holds a dominant share of the market. The country witnessed an increasing incidence of cancer, leading to a surge in the demand for cancer therapeutics. These factors have led to increasing research and development activities for cancer treatments, followed by subsequent innovative product launches and approvals.

• For instance, in March 2023, Ono Pharmaceutical Co., Ltd. received Opdivo (nivolumab) Intravenous Infusion’s additional approval from South Korea’s Ministry of Food and Drug Safety (MFDS), for the first-line treatment of patients with unresectable advanced or metastatic esophageal squamous cell carcinoma. Such developments are likely to bolster the segmental growth.

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The Global Cancer Observatory (GCO) reported 237,701 new cases of cancer, with lung cancer being the most prominent form of cancer in South Korea.

The diabetes segment is estimated to account for a considerable share of the South Korea pharmaceuticals market. The South Korean populace is more prone to diabetes due to various factors such as smoking, decreased physical activity, and short sleep cycles due to overtime culture.

• For instance, in 2024, the Korean Diabetes Association (KDA) reported the high prevalence of diabetes, with 5.3 million people suffering from diabetes.

By Drug Type Analysis

Surging Investment in Production Capacity Expansion of Small Molecules/Conventional Drugs to Drive Segmental Growth

Based on drug type, the market is divided into biologics & biosimilars and small molecules/conventional drugs.

The small molecules/conventional drugs segment is estimated to grow exponentially over the forecast period. The high growth of the segment is attributed to increasing investment in the expansion of the manufacturing capacity of small molecules or conventional drugs.

• For instance, in September 2024, SK Pharmteco expanded its small molecule and peptide production capabilities with a USD 260.0 million investment to construct a new facility in Sejong, South Korea. Such developments are expected to drive the segment growth.

By Route of Administration

Higher Bioavailability and Efficiency of Parenterally Administered Products to Propel the Segmental Dominance

Based on the route of administration, the market is further classified into oral, parenteral, topical, inhalation, and others.

The parenteral segment is estimated to account for a dominant market share. The parenterally administered pharmaceutical products offer higher bioavailability and higher efficiency. The increasing application of precision medicine that employs parenteral route of administration drives product demand, pushing segmental dominance. The benefits also attract various key players for development and new product launches with the parenteral route of administration

• For instance, in September 2021, Boryung Pharmaceutical and Samsung Bioepis launched their bevacizumab biosimilar Onbevzi in Korea. The biosimilar is administered parenterally. Such developments are likely to reinforce the dominant share of the segment.

The oral segment is estimated to account for a substantial share of the market. The orally administered pharmaceutical products offer ease of administration and provide greater shelf life and reduced cost. The route also assists in medicinal adherence due to uncomplicated and easy administration. These benefits also attract various key players for development and new product launches with the oral route of administration.

• For instance, in September 2023, Lotus Pharmaceutical collaborated with Adalvo to launch Gabapentin ER 300 / 600 mg in South Korea. The drug is designed to provide long-lasting relief to individuals suffering from Postherpetic Neuralgia (PHN). Gabapentin ER, which is administered orally, offers meaningful improvement in patient convenience.

By Age Group

Rising Drug Demand for Adults to Boost Segmental Growth

Based on age group, the market is divided into pediatric and adult.

The adult segment is projected to dominate the global market over the forecast period. The high share of the segment is due to the rising demand for medications for the adults demographic, with the rising prevalence of chronic diseases in South Korea. Additionally, underlining the demand, various key players are focusing on new product launches for the adults segment to accommodate the amplifying demand.

• For instance, in February 2024, Sobi and Handok partnered to expand their rare disease business in South Korea. The partnership aimed to develop, commercialize, and distribute the company’s rare disease medicines in South Korea, such as Doptelet (avatrombopag). The drug is approved for the treatment of severe thrombocytopenia in adult patients with chronic liver disease. Such developments are anticipated to drive the segmental growth.

By Distribution Channel

Demand for Advanced Therapeutics in Hospital Settings to Boost Segmental Dominance

Based on distribution channel, the market is divided into hospital pharmacies, drug stores & retail pharmacies, and online pharmacies.

The hospital pharmacies’ segment is anticipated to hold a dominant market share. Hospital pharmacies are the first point of contact for providing innovative medicines. There are various designated hospitals and clinics in South Korea offering cell therapies and gene therapies.

• For instance, in February 2025, South Korea enacted the Regenerative Medicine Law that enables patients diagnosed with severe, rare, or incurable diseases to receive gene and cell therapy and is yet to receive market approval. There are 112 hospitals and clinics designated as ARM implementation centers. Such developments and hospital collaborations are expected to boost the growth of hospital pharmacies.

List of Key Companies in the South Korean Pharmaceuticals Market

Novartis AG, Hanmi Pharm. Co., Ltd., and Takeda Pharmaceutical Company Limited are the prominent players in the South Korean pharmaceuticals market. The other companies with a considerable presence in the market include CELLTRION INC., F. Hoffmann-La Roche Ltd, and other small and medium-sized market players. These companies are making strategic moves, such as conducting research and development activities for the development of innovative pharmaceutical drugs, vaccines, and employing strategic activities such as collaborations, mergers, and acquisitions, which are expected to help increase their South Korea pharmaceuticals market share.

LIST OF KEY COMPANIES PROFILED

• Takeda Pharmaceutical Company Limited (Japan)
• Novartis AG (Switzerland)
• Otsuka Holdings Co., Ltd. (Japan)
• Astellas Pharma Inc. (Japan)
• Eisai Co., Ltd. (Japan)
• DAIICHI SANKYO COMPANY, LIMITED (Japan)
• ONO PHARMACEUTICAL CO., LTD. (Japan)
• Chugai Pharmaceutical Co., Ltd. (Japan)
• Kyowa Kirin Co., Ltd. (Japan)
• Hanmi Pharm.Co.,Ltd. (South Korea)
• CELLTRION INC. (South Korea)
• Hoffmann-La Roche Ltd. (Switzerland)
• Yuhan Corporation (South Korea)

KEY INDUSTRY DEVELOPMENTS

• July 2025: Astellas Pharma Inc. partnered with the Korea Institute of Startup and Entrepreneurship Development, an umbrella organization of the Ministry of SMEs and startups. The partnership aimed to identify Korean drug discovery startups and support their business growth and global expansion.
• January 2025: Newron Pharmaceuticals S.p.A. collaborated with Myung In Pharm Co. Ltd. for the development, manufacturing, and commercialization of Newron’s add-on therapy for poorly responding patients with schizophrenia and treatment-resistant schizophrenia (TRS) in South Korea.

REPORT COVERAGE

The report provides a detailed analysis of the market. It focuses on market dynamics and key industry developments, such as mergers and acquisitions. Additionally, it includes information about the increasing prevalence of key diseases, technological advancements, shifting trends experienced by the industry new product launches. Besides this, the report also offers insights into the latest industry trends and the impact of various factors on the demand for pharmaceuticals.

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Report Scope & Segmentation