South Korea secures $4.2b biologics deals as advanced biopharma activity expands

Licensing, funding, and IPO activity support sector development

South Korea's biopharma companies have secured about $4.2b in biologics licensing agreements, reflecting increased activity in advanced modalities including antibody–drug conjugates and cell and gene therapies, according to McKinsey & Company.

Transactions include GlaxoSmithKline’s $2.5b agreement with ABL Bio to develop therapies designed to cross the blood–brain barrier for neurodegenerative diseases, alongside LigaChem Biosciences’ $1.7b partnership with J&J Innovative Medicine. McKinsey said the deals indicate broader participation by South Korean firms in global oncology and next-generation therapeutic development.

South Korean companies are also increasing involvement in global regulatory filings and multiregional clinical trials. This activity is supported by hospital-linked research centres and an expanding base of contract development and manufacturing organisations, the report said.

Public funding has contributed to sector expansion. Biopharma has been designated one of 55 National Strategic Technologies, and the Korea Drug Development Fund has committed $2b to support more than 1,200 innovation projects through 2030, according to McKinsey.

Capital markets have provided additional financing channels, with about 40 biotech initial public offerings on the KOSDAQ since 2018, including listings by pre-revenue companies. McKinsey said these factors together support continued development of South Korea’s biopharma sector.