Korea Pharmaceutical - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The Korea pharmaceutical market is expected to grow from USD 23.19 billion in 2025 to USD 23.74 billion in 2026 and is forecast to reach USD 26.69 billion by 2031 at 2.37% CAGR over 2026-2031.

This modest rise sits at the intersection of a super-aged society, export-oriented biologics capacity, and pricing rules that favor value-based care. Government funding for biomedical R&D climbs 15% in 2025, signaling sustained political will to back novel therapies even as the actual-transaction-price scheme continues to restrain reimbursement ceilings. Biologics plants in Songdo now supply leading multinationals and drive record pharma exports, while data-protection reforms grant 4-10 years of exclusivity depending on drug class. Cardiovascular drugs dominate scripts because 45.2% of middle-aged and senior Koreans have hypertension. Oncology lines, benefitting from accelerated MFDS review and aggressive R&D tax credits, post the fastest growth through 2030. Digital health laws and the coming debate on tele-pharmacy hint at longer-term channel disruption that could reshape the Korea pharmaceutical market.

Korea Pharmaceutical Market Trends and Insights

Supportive Government Policy Framework for Biopharma Industrialization

The 2023 “Bio Economy 2.0” plan lifts biopharma funding to 36.7 billion won in 2025, trims approval-to-reimbursement lag via an MFDS linkage system, and cements Seoul’s position as the world’s top city for industry-sponsored trials. These levers fuel pipeline expansion across antibody-drug conjugates, RNA therapeutics, and cell therapies, enhancing export competitiveness for the Korea pharmaceutical market.

Aging Population and Rising Chronic Disease Burden

With citizens 65+ passing the 20% threshold in 2025, chronic illness prevalence soars. Out-of-pocket medical costs for seniors managing multiple conditions average USD 1,163.8 versus USD 456.1 for peers without comorbidities.Government “Essential Healthcare” packages that bolster local clinics and telemonitoring expand long-term demand for antihypertensives, statins, and antidiabetics across the Korea pharmaceutical market.

Drug Re-pricing Policy Compresses Margins

Actual-transaction-price audits and tougher volume caps cut list prices after market launch. Generics still lack decisive price gaps versus originals, curbing competition. Oncology absorbs 46.2% of new-drug spending, squeezing funds for other areas and heightening pressure to renegotiate rebates within the Korea pharmaceutical market.

Other drivers and restraints analyzed in the detailed report include:

• Surge in Biosimilar Adoption Backed by Domestic Manufacturing Scale
• Growing Export-Oriented CDMO Contracts from NA & EU Clients
• Risk-Sharing Agreements Delay Ultra-Orphan Launches

Segment Analysis

Cardiovascular drugs delivered 14.05% of the Korea pharmaceutical market size in 2025, driven by high hypertension prevalence and strong compliance with combination pills. Oncology outpaces all others at a 4.24% CAGR, backed by accelerated MFDS reviews and robust venture funding for antibody-drug conjugates showcased at AACR 2025.

Anti-diabetic segments gain traction as DPP4 and SGLT2 inhibitors secure guideline status, while GI therapies rebound on new acid-blocker launches such as Fexuclue, whose sales jumped 57% in early 2024. Respiratory products stabilize post-COVID, and rare-disease portfolios benefit from strengthened data exclusivity, increasing their viability inside the Korea pharmaceutical market.

Prescription products held 86.88% Korea pharmaceutical market share in 2025, cemented by universal insurance and strict physician-dispense separation. Branded drugs survive list-price erosion through line-extension reformulations, while generics struggle to win volume due to identical pricing rules.

OTC medicines, though smaller, clock a 3.04% CAGR, helped by a 2012 law that lets convenience stores sell select analgesics. Consumer self-care apps guide dosing and refill alerts, deepening penetration of vitamins and digestive aids within the Korea pharmaceutical market.

The Report Covers Korea Pharmaceutical Market Value & Analysis. The Market is Segmented by Therapeutic Category (Anti-Infectives, and More) and Drug Type (Prescription Drugs and OTC Drugs), Technology (Small Molecules, and More), by Formulation (Tablets and More), Route of Administration (Oral, and More), Distribution Channel (Hospital Pharmacies, and More). The Value is Provided (in USD Million) for the Above Segments.

List of companies covered in this report:

• Yuhan Corporation
• Celltrion
• Hanmi Pharmaceutical Co. Ltd.
• GC Pharma (Green Cross Corp.)
• Chong Kun Dang Pharmaceutical
• Samsung Bioepis Co. Ltd.
• Daewoong Pharmaceutical Co. Ltd.
• Boryung Pharmaceutical Co. Ltd.
• SK Biopharmaceuticals Co. Ltd.
• LG Chem Ltd. (Life Sciences)
• CJ Healthcare / HK inno.N
• Handok Inc.
• Kolon Life Science Inc.
• Pfizer Pharmaceuticals Korea
• Janssen (Korea Johnson & Johnson)
• AstraZeneca Korea
• Novartis Korea
• Sanofi-Aventis Korea
• Merck & Co. (MSD Korea)
• AbbVie Korea
• Bayer Korea
• Roche Korea
• Bristol Myers Squibb Korea
• Takeda Korea
• Boehringer Ingelheim Korea

Additional benefits of purchasing this report:

• Access to the market estimate sheet (Excel format)
• 3 months of analyst support