South Korea’s pharmaceutical sales to hit $40.6b by 2028

It is expected to rise at a compound annual growth rate of 10% in US dollar terms.

South Korea's pharmaceutical sales are projected to reach $40.6b (KRW44.6t) by 2028 at a compound annual growth rate of 10% in US dollar terms, said BMI.

This growth follows the Ministry of Food and Drug Safety's "Innovation Plan for Drug Approval," initiative.

Announced in September, the plan aims to shorten the new drug approval period to 295 days and raise the new drug review workforce from 30% to 70%.

In addition, the plan proposes a substantial increase in drug approval fees—from $6,520 (KRW9m) to $297,148 (KRW410m)—to support these initiatives.

Whilst the accelerated review process could improve market access for new therapies, the 50-fold fee increase may deter pharmaceutical companies from prioritising South Korea for new drug launches.

“This hesitancy will curtail the introduction of new drugs into the market, restricting the industry’s revenue growth potential,” the report said.

South Korea currently lags behind other markets. About 33% of new global drugs introduced since 2012 are available domestically, compared to 85% in the US, with an average approval wait time of 28 months.

KRW1 = $0.00071