Despite focus on generics, South Korean pharma market to reach $24.3 billion by 2020

As a result of a high level of access to health care insurance and reimbursement, coupled with increasing demand for healt hcare services from an expanding elderly population, the South Korean pharmaceutical market is expected to climb in value from $19.3 billion in 2013 to $24.3 billion by 2020, at a compound annual growth rate (CAGR) of 3.9%.

According to a new report from research and consulting firm GlobalData, the South Korean pharmaceutical industry is also expected to be influenced by various government initiatives over the coming years, such as the Korean Small Business Innovation Research program. These projects are aimed at encouraging R&D activities and sustaining growth in the pharmaceutical sector.

Joshua Owide, director of Healthcare Industry Dynamics at GlobalData, says: “In order to boost private investment, the South Korean government chose to provide 44 pharma companies with special benefits, such as tax reduction and exemption, funding for research projects, and a delay in drug price cuts.”