KRPIA: Global pharmaceutical companies invest KRW 1.0922 trillion in domestic R&D, topping KRW 1 trillion for second straight year

[Financial News] Global pharmaceutical companies spent nearly KRW 1.1 trillion on domestic clinical research last year, marking the second consecutive year that spending exceeded KRW 1 trillion.
The Korea Research-Based Pharmaceutical Industry Association (KRPIA) released its ‘2026 KRPIA R&D and Investment Status Report’ on the 29th. Based on fiscal year 2025, the report analyzed domestic research and development (R&D) investment, clinical research activity, employment and other data from KRPIA’s 34 member companies.
According to the report, the 34 global pharmaceutical companies invested approximately KRW 1.0922 trillion in R&D for domestic clinical research last year, excluding direct outsourcing costs by overseas headquarters, up 5.3% from the previous year. The average annual growth rate over the past five years (2021–2025) was 11.2%. By category, costs related to investigational drugs were the largest, at KRW 429.3 billion, accounting for 39.3% of the total.
The scale of clinical research also grew. Global pharmaceutical companies conducted 1,787 clinical studies in Korea last year, up 5.7% from the previous year, with the number increasing by an average of 3% annually over the past five years. Of these, 1,181 company-sponsored Phase 1–3 clinical trials accounted for about 66% of the total, while major clinical studies—which included Phase 1–4 clinical trials and investigator-initiated clinical research—numbered 1,447.
In particular, 26,686 people participated in Phase 1–3 clinical trials, up 17.6% from the previous year. Participation increased at every phase: 22.0% in Phase 1, 36.8% in Phase 2 and 14.9% in Phase 3.
Clinical studies in areas with significant unmet medical needs also expanded. Clinical studies of cancer drugs numbered 1,030, while rare disease studies numbered 192, accounting for 71.2% and 13.3% of major clinical studies, respectively. The average annual growth rates over the past five years were 4.0% for cancer drug studies and 10.7% for rare disease studies; the report said this had helped expand patients’ treatment opportunities.
The report also found a job-creation effect. The number of people employed in domestic R&D by global pharmaceutical companies reached 2,625 last year, up 6.3% from the previous year. Clinical research staff made up the largest group, at 1,414 (53.8%). The report said this was significant because expertise in clinical trial management, quality control and regulatory compliance, among other areas, accumulates in Korea through the conduct of global clinical trials. Global pharmaceutical companies are also expanding cooperation with domestic pharmaceutical companies and research institutions, including by bringing in domestically developed compounds and conducting joint R&D, while continuing to run educational programs for universities and research institutes.
However, Korea is losing ground in the competition to attract global clinical trials. China’s share of global clinical trials rose from 9% in 2019 to 17% last year, while Korea’s share fell from 3.46% (2024) to 3.38% (2025) over the same period. China’s rapid advance is seen as the result of a combination of factors, including improvements to its regulatory environment, national policies to foster the biohealth industry, a large pool of patients and the rapid recruitment of clinical trial participants.
The report noted that, as the drug development environment is rapidly shifting toward next-generation innovative technologies, it is necessary to improve systems in line with international regulatory trends and create a clinical research environment that can respond flexibly to new research methods.
KRPIA said, “Domestic R&D investment by global pharmaceutical companies is expanding patients’ opportunities to access innovative new drugs and contributing to the development of skilled professionals and the domestic R&D ecosystem,” adding, “For Korea to establish itself as a major hub for global drug development, it must strengthen its competitive clinical research environment and predictable regulatory framework, and create a virtuous cycle in which the value of innovative new drugs is appropriately recognized and leads to sustained investment.” 


[email protected] Jung Myung-jin, Medical Correspondent Reporter