South Korea Pharmaceuticals & Healthcare Report

Providing expert analysis, independent forecasts and competitive intelligence on the pharmaceuticals and healthcare industry.

Report includes: BMI Industry View, Industry SWOT Analysis, Industry Forecasts, BMI's Pharmaceuticals and Healthcare Risk Reward Index, Market Summary, Economic Forecasts, Company Profiles and Competitive Landscape.

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  • Gain insight on emerging trends that could support, strengthen or disrupt your activities in the market
  • Get a full view of the competitive landscape to assess your market position
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South Korea Pharmaceuticals & Healthcare Report
Product Price
$1,295.00

BMI View: South Korea's biomedical research and development sector will continue to flourish in line with growing investments by local drugmakers. Facilitating this commitment is the strong support provided by the government as well as the opportunities to form drug discovery partnerships with leading US-based companies. As the sector develops, the broader economy will benefit and serve to support South Korea's export growth.

Headline Expenditure Projections

  • Pharmaceuticals: KRW16,590bn (USD15.8bn) in 2014 to KRW17,117bn (USD14.6bn) in 2015; +3.2% in local currency terms and -7.1% in US dollar terms. Forecast unchanged from previous quarter , negative growth in USD terms due to currency fluctuations

  • Healthcare: KRW108,205.8bn (USD102.8bn) in 2014 to KRW114,321.2bn (USD103.9bn) in 2015; +5.7% in local currency terms and -4.9% in US dollar terms. Forecast broadly unchanged from previous quarter.

Headline Pharmaceuticals & Healthcare Forecasts (South Korea 2013-2019)
2013 2014 2015f 2016f 2017f 2018f 2019f
f = BMI forecast. Source: WHO, National Sources, BMI
Pharmaceutical sales, USDbn 14.714 15.754 14.630 14.015 14.809 16.187 17.585
Pharmaceutical sales, % of GDP 1.13 1.12 1.11 1.10 1.08 1.06 1.04
Pharmaceutical sales, % of health expenditure 15.7 15.3 15.0 14.6 14.3 14.0 13.7
Health spending, USDbn 93.593 102.757 97.710 95.774 103.456 115.491 127.993

Risk/Reward Index

In Q116, South Korea ranks second out of the 19 countries surveyed in the Asia Pacific region. South Korea's score for its Rewards variable is high, indicating the country's favourable longer-term standing in terms of its pharmaceutical market development. However, we note Risks - particularly in relation to pharmaceutical pricing and reimbursement - will remain present, especially as the population ages and requires more public sector resources.

Latest Updates

  • In September 2015, the country will revise health insurance coverage for foreign workers to prevent the misuse of benefits.

  • In August 2015, the South Korean government announced it will provide tourists with a 10% rebate on cosmetic surgery, effective from April 2016, in a bid to boost the tourism sector in the country.

  • In July 2015, the South Korean government spends less to support its citizens' healthcare costs compared with other OECD nations, according to a study by the National Assembly Research Service.

BMI Economic View: South Korea's Q315 real GDP grew by 2.6% y-o-y, reflecting a recovery from the previous quarter. Despite stronger growth, we have downgraded our forecast for 2015 real GDP growth to come in at 2.4% compared to 2.8% previously, as the recovery in the domestic economy will be insufficient to offset the slowdown in the external sector. We have also downgraded our real GDP forecast for 2016 to 2.8% from 3.0% previously, as external demand is likely to remain weak due to the slowdown in the Chinese economy.

BMI Political View: South Korea's inability to settle ongoing disputes with its immediate neighbours, North Korea, Japan, and China, will severely limit its attempts at becoming a regional middle power. Furthermore, Seoul will find it increasingly difficult to balance its interests between the US and China, as the latter two step up their geopolitical competition in the Asia-Pacific region.

BMI Industry View
7
Table: Headline Pharmaceuticals & Healthcare Forecasts (South Korea 2013-2019)
7
SWOT
9
Industry Forecast
11
Pharmaceutical Market Forecast
11
Latest Updates
11
Structural Trend
12
Table: Pharmaceutical Sales, Historical Data And Forecasts (South Korea 2011-2019)
13
Healthcare Market Forecast
14
Latest Updates
14
Structural Trends
15
Table: Healthcare Expenditure Trends, Historical Data And Forecasts (South Korea 2011-2019)
15
Table: Government Healthcare Expenditure Trends, Historical Data And Forecasts (South Korea 2011-2019)
16
Table: Private Healthcare Expenditure Trends, Historical Data And Forecasts (South Korea 2011-2019)
16
Prescription Drug Market Forecast
17
Structural Trends
17
Table: Prescription Drug Market Indicators, Historical Data And Forecasts (South Korea 2011-2019)
18
Patented Drug Market Forecast
19
Structural Trends
19
Table: Patented Drug Market Indicators, Historical Data And Forecasts (South Korea 2011-2019)
20
Generic Drug Market Forecast
20
Structural Trends
21
Table: Generic Drug Market Indicators, Historical Data And Forecasts (South Korea 2011-2019)
22
South Korea
22
Structural Trends
23
Table: Over-The-Counter (OTC) Medicine Market Indicators, Historical Data And Forecasts (South Korea 2011-2019)
25
Pharmaceutical Trade Forecast
26
Structural Trends
26
Table: Pharmaceutical Trade Data And Forecasts (South Korea 2013-2019)
27
Table: Pharmaceutical Trade Data And Forecasts local currency (South Korea 2013-2019)
28
Industry Risk Reward Ratings
29
Asia Pacific Risk/Reward Index
29
South Korea Risk/Reward Ratings
36
Rewards
36
Risks
36
Regulatory Review
38
Regulatory Review
38
Intellectual Property Issues
41
Pricing And Reimbursement Regime
43
Table: Different Price Control Levers
43
Market Overview
48
Market Overview
48
Healthcare System
48
Table: Healthcare Resources (South Korea 2009-2014)
49
Table: Healthcare Personnel (South Korea 2009-2014)
49
Table: Healthcare Activity (South Korea 2009-2014)
50
Healthcare Sector
50
National Health Insurance Corporation
51
Research And Development
53
Biotechnology Sector
54
Clinical Trials
56
Epidemiology
58
Competitive Landscape
61
Research-Based Industry
61
Generic Drugmakers
62
Table: Multinational Market Activity
64
Pharmaceutical Distribution
65
Pharmaceutical Retail Sector
66
Table: Pharmaceutical Retailers, 2000-10
67
Table: Timeline Of OTC Slow Liberalisation
68
Company Profile
69
Daewoong Pharmaceutical
69
Dong-A Pharmaceutical
73
Eli Lilly
78
GlaxoSmithKline
81
Hanmi Pharmaceutical Co
84
Merck & Co
88
Novartis
91
Pfizer
95
Sanofi
98
Yuhan Corporation
101
Demographic Forecast
105
Table: Population Headline Indicators (South Korea 1990-2025)
106
Table: Key Population Ratios (South Korea 1990-2025)
106
Table: Urban/Rural Population & Life Expectancy (South Korea 1990-2025)
107
Table: Population By Age Group (South Korea 1990-2025)
107
Table: Population By Age Group % (South Korea 1990-2025)
108
Glossary
110
Methodology
112
Pharmaceutical Expenditure Forecast Model
112
Healthcare Expenditure Forecast Model
112
Notes On Methodology
113
Risk/Reward Index Methodology
114
Index Overview
115
Table: Pharmaceutical Risk/Reward Index Indicators
115
Indicator Weightings
116

The South Korea Pharmaceuticals & Healthcare Report features BMI Research's forecasts for drugs and healthcare expenditure and imports and exports, focusing on the growth outlook for the prescription, OTC, patented drugs and generics market segments.

BMI's South Korea Pharmaceuticals & Healthcare Report provides industry professionals, strategists, company executives, investors, analysts and sales/marketing heads with independent forecasts and competitive intelligence on the South Korea pharmaceutical and healthcare industry.

Key Benefits

  • Benchmark BMI's pharmaceutical and healthcare market forecasts for South Korea, to test other views - a key input for successful budgeting and strategic business planning in the Korean pharmaceutical and healthcare market.
  • Target business opportunities and risks in the Korean pharmaceutical and healthcare sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in South Korea.
  • Assess the activities, strategy and market position of your competitors using our company profiles (including SWOTs, KPIs and latest activity) and competitive landscape tables.

Coverage

BMI Industry View

An at-a-glance perspective on the latest regulatory developments, key forecast indicators and major corporate developments, covering the prescription, OTC and generics markets. The pharmaceuticals and healthcare SWOT outlines strategic factors that affect the basic assumptions underpinning BMI’s forecast analysis, and taken together with BMI’s political, economic and business environment SWOTs, it gives a complete overview of market climate.

BMI Industry Forecast Scenario

Industry forecasts to end-2019 for all key indicators, supported by explicit assumptions, plus analysis of key downside risks to the main forecasts:

  • Healthcare: Total healthcare expenditure (USDbn), healthcare expenditure (% of GDP), healthcare expenditure per capita (USD), hospital beds, doctors, and birth & mortality rates (all per ‘000 population).
  • Pharmaceutical Market: Drug expenditure in USDbn, % of GDP and per capita (USD).
  • Patented Drug Market: Prescription drug sales (USDbn & % of total sales).
  • Generic Drug Market: Generic product sales (USDbn), generic sales (% of total sales).
  • OTC Drug Market: OTC sales (USDbn & % of total sales).
  • Macroeconomic Forecasts: Nominal and real GDP, % real GDP growth, % private consumption growth, % industrial output growth, % consumer price index, % GDP price deflator, exports, imports, trade balance, current account balance, foreign direct investment, exchange rate against USD, government expenditure and external debt.

BMI’s Pharmaceuticals and Healthcare Risk Reward Index

BMI’s Risk Reward Index provides investors (both national and multinational) looking for opportunities in the region with a clear country-comparative assessment of the market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.

Market Summary

A snapshot of key market characteristics, including total size of the pharmaceuticals and healthcare segments, growth drivers, leading therapeutic areas and the competitive landscape

Industry Developments

A focus on government healthcare reforms, epidemiological trends, mergers and acquisitions, product launches, market entries, FDI activity, R&D, biotechnology, clinical trials and supply chain issues.

Regulatory Regime

Details of the industry regulatory framework and key legislation covering the licensing of new products/services, pricing and reimbursements, intellectual property, taxation and advertising, as well as analysis of the overall regulatory burden.

Competitive Landscape

The competitive landscape section provides comparative company analyses and index by USD sales and % share of total sales – for the total pharmaceutical sector, as well as the OTC, generics and distribution sub-sectors.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate Company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.