"Second Semiconductor" Biohealth Exports Hit All-Time High, Poised to Surpass $30 Billion This Year

[Financial News] South Korea's biohealth industry is firmly establishing itself as a next-generation export growth engine.
Last year, exports reached $27.9 billion (about 40.85 trillion won), setting a new record high. The government has set this year's target at $30.4 billion and has effectively kicked off efforts to break through the $30 billion (around 44 trillion won) mark.
Having risen to become the eighth-largest export sector after semiconductors, automobiles, and general machinery, the biohealth industry is now leaping forward as the "second semiconductor." The government also plans to actively support export growth, with expectations that it will usher in the era of $30 billion in exports.
The Ministry of Health and Welfare held a meeting with biohealth export companies on the 3rd and announced that last year's exports reached $27.9 billion, up 10.3% from the previous year. This achievement is particularly meaningful given the external uncertainties, including tariff hikes and instability in global supply chains.
Last year, pharmaceutical exports totaled $10.4 billion, surpassing the $10 billion mark for the first time. Biopharmaceuticals, which accounted for 62.6% of total pharmaceutical exports, led this growth by expanding their market presence, especially in the United States and Europe.
Exports of biopharmaceuticals increased from $670 million in 2015 to $3.49 billion in 2020, and then to $6.52 billion in 2025, representing roughly a tenfold jump over ten years. The full-scale expiration of patents on original biopharmaceuticals has boosted demand for biosimilars, and policies in the United States and the European Union (EU) encouraging biosimilar prescriptions have also had a positive impact.

This growth has been further supported by South Korea's world-class Contract Development and Manufacturing Organization (CDMO) capabilities in biopharmaceuticals. The large-scale production capacity and strong quality credibility of domestic companies such as Samsung Biologics have led to increased orders from global big pharma companies, solidifying the country's export base.
In medical devices, exports of in vitro diagnostic devices fell sharply after the end of the COVID-19 boom, but have recently begun to recover. General medical devices have maintained steady growth for five consecutive years, underscoring the sector's fundamental strength. In particular, amid population aging and the shift toward Artificial Intelligence (AI), exports of advanced devices such as ultrasound imaging diagnostic devices and surgical robots are expected to grow.
The government plans to support both the generation of clinical evidence and overseas expansion by establishing an AI-based Surgical Robot Innovation Lab and operating a Hospital-based Clinical Validation Support Center.
Cosmetics represent another pillar of growth. Exports reached $11.4 billion last year, renewing the record high for the second consecutive year. It is particularly symbolic that the United States has become the top export destination. South Korea is moving away from its past dependence on China, with export markets diversifying into Southeast Asia, the Middle East, Europe, and beyond.
The share of exports going to countries outside the top five destinations expanded from 19.5% in 2021 to 43.4% in 2025. This shift reflects the combined effects of the Korean Wave (Hallyu), rising recognition of K-beauty brands, and the expansion of both online and offline distribution channels.
For this year, the government has set an export target of $30.4 billion, up 9.1% from last year. The detailed goals are $11.7 billion for pharmaceuticals, $6.2 billion for medical devices, and $12.5 billion for cosmetics.
To support this, the government will increase related budgets 3.5-fold, from 68.5 billion won last year to 233.8 billion won. Key measures include creating a 1 trillion won mega fund, launching a 150 billion won Phase 3 Clinical Trial Specialized Fund, expanding Global Open Innovation, and supporting entry into overseas bio-healthcare clusters.
Policy efforts will go beyond simple export subsidies and focus on building an "end-to-end ecosystem" that connects research and development, clinical trials, production, and overseas commercialization.
Looking at export trends over the past five years, there was a temporary decline in 2023, followed by a rapid rebound in 2024 and 2025, with new record highs set. This shows that growth is not a short-lived boom driven by the pandemic, but is instead based on structural competitiveness in biopharmaceuticals, aesthetic medical devices, and K-beauty.
As the global pharmaceutical and healthcare industry expands on the back of population aging and technological innovation, South Korea is positioning itself as a supplier with competitive advantages in production, quality, and speed. The key challenges now are developing innovative new drugs and increasing the share of high value-added products.
Lee Hyoung-hoon, Second Vice Minister of Health and Welfare, stated, "On the back of world-leading CDMO and the explosive popularity of K-beauty, demand for Korean-made biopharmaceuticals, aesthetic medical devices, and cosmetics is surging," adding, "We will actively support Korea's biohealth industry so that, as the 'second growth engine' following semiconductors, it can grow into a major export industry."
vrdw88@fnnews.com Kang Joong-mo Reporter