South Korea Pharmaceuticals Market Size, Share, and COVID-19 Impact Analysis, By Type (Drugs and Vaccines), By Disease Indication (Cancer/Oncology, Diabetes, Infectious, Cardiovascular, Neurology & Psychiatry, Respiratory, Renal, Obesity, Autoimmune, Ophthalmic, Gastrointestinal, Dermatology, Hematology/Blood, Liver/Hepatology, Genetic, Hormonal/Endocrine, Women’s Health, Reproductive, and Allergies), By Distribution Channel (Hospital Pharmacy, Retail Pharmacy, and Others), and South Korea Pharmaceuticals Market Insights, Industry Trend, Forecasts to 2035

• The South Korea Pharmaceuticals Market Size Was Estimated at USD 27.9 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of Around 8.3% from 2025 to 2035
• The South Korea Pharmaceuticals Market Size is Expected to Reach USD 67.4 Billion by 2035

According to a research report published by Spherical Insights & Consulting, The South Korea Pharmaceuticals Market size is anticipated to reach USD 67.4 Billion by 2035, Growing at a CAGR of 8.3% from 2025 to 2035. The South Korea Pharmaceuticals market growth is driven by an aging population, rising prevalence of chronic diseases, strong government support for healthcare innovation, and increasing investments in biotechnology and pharmaceutical R&D.

Market Overview

The South Korea pharmaceuticals market is defined as the industry that is involved in the research, development, manufacture, and distribution of pharmaceutical drugs used for the prevention, diagnosis, and treatment of diseases. The market comprises prescription drugs, over-the-counter (OTC) medications, generic drugs, and biologics. South Korea boasts a well-developed healthcare system and an emphasis on innovation, driven by government support and favorable regulatory frameworks. The rising expenditure on healthcare, advancements in drug development technology, and the growing need for personalized medicine are some of the factors that are driving the market.

The pharmaceutical market in South Korea is experiencing some major trends that are shaping the future of the industry. The trend towards biologics and biosimilars is gaining momentum due to the increasing demand for innovative therapies in cancer and autoimmune diseases. The adoption of digital health and AI in drug discovery is also gaining pace, which is enhancing the efficiency of R&D and shortening the time to market. The increasing use of generic medicines is also contributing to lowering healthcare costs.

The South Korean government is actively promoting the pharmaceutical industry through healthcare reform, R&D investment, and supportive drug approval policies. Biotechnology innovation and pharmaceutical export promotion policies are also improving the competitiveness of the market on a global scale. Technological innovation in the market, including AI-based drug development, precision medicine, and digital clinical trials, is improving the efficiency of the market and accelerating pharmaceutical innovation.

Report Coverage

This research report categorizes the market for the South Korea pharmaceuticals market based on various segments and regions, and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the South Korea pharmaceuticals market. Recent market developments and competitive strategies, such as expansion, product launch, development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the South Korea pharmaceuticals market.

Driving Factors

The South Korea pharmaceuticals market is driven by the aging population, rising incidence of chronic and lifestyle-related diseases, and growing expenditure on healthcare. Government support for pharmaceutical R&D, the growing use of biologics, and the rising use of personalized medicine are further fueling the growth of the market. South Korea is a leader in the development of biosimilars. Firms such as celltrion and samsung bioepis are major contributors, with major investments in ADCs and mRNA platforms. The National Health Insurance service (NHIS) provides coverage for a major part of pharmaceutical expenses, thus fueling high consumption and adoption of new and expensive therapies.

Restraining Factors

Market growth is restrained by strict regulatory approval processes, high R&D costs, and pricing pressure from government reimbursement policies. Patent expirations and intense competition from generic drug manufacturers also pose challenges for branded pharmaceutical companies.

Market Segmentation

The South Korea pharmaceuticals market share is classified into type, disease indication, and distribution channel.

• The drugs segment accounted for the largest revenue market in 2024 and is expected to grow at a significant CAGR during the forecast period. 

The South Korea pharmaceuticals market is segmented by type into drugs and vaccines. Among these, the drugs segment accounted for the largest revenue market in 2024 and is expected to grow at a significant CAGR during the forecast period. The high prevalence of conditions such as cancer, diabetes, cardiovascular disorders, and neurological diseases has led to sustained demand for prescription and specialty drugs. The elderly population is driving up demand for long-term care for chronic conditions. High drug use is a result of high national health insurance (NHIS) spending. The government actively supports the sector through programs such as KoNeCT for clinical trials.

• The cancer/oncology segment accounted for the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period. 

Based on disease indication, the South Korea pharmaceuticals market is bifurcated by cancer/oncology, diabetes, infectious, cardiovascular, neurology & psychiatry, respiratory, renal, obesity, autoimmune, ophthalmic, gastrointestinal, dermatology, hematology/blood, liver/hepatology, genetic, hormonal/endocrine, women’s health, reproductive, and allergies. Among these, the cancer/oncology segment accounted for the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period. Being a developed country with a large and growing senior population, the incidence of cancer is increasing, thereby leading to an increased demand for innovative cancer treatments. The increasing adoption of biologic and targeted therapies, and substantial investments in cancer research and development, are some of the factors that have led to this trend.

• The hospital pharmacy segment accounted for the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period. 

Based on the distribution channel, the South Korea pharmaceuticals market is segmented by hospital pharmacy, retail pharmacy, and others. Among these, the hospital pharmacy segment held the largest share in 2024 and is expected to grow at a significant CAGR during the forecast period. The hospital pharmacy segment is driven by the high volume of inpatient treatments and the administration of specialized and high-cost drugs such as oncology medicines, injectable biologics, and critical care drugs. Hospitals serve as the primary point of care for complex and chronic diseases, leading to higher pharmaceutical consumption through hospital pharmacies compared to retail outlets.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the South Korea Pharmaceuticals market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborate analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Samsung Biologics
• Celltrion
• SK Biopharmaceuticals
• Hanmi Pharmaceutical
• Yuhan Corporation
• LG Chem Life Sciences
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at the South Korea, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the South Korea pharmaceuticals market based on the below-mentioned segments:

South Korea Pharmaceuticals Market, By Type

• Drugs
• Vaccines

South Korea Pharmaceuticals Market, By Disease Indication

• Cancer/Oncology
• Diabetes
• Infectious
• Cardiovascular
• Neurology & Psychiatry
• Respiratory
• Renal
• Obesity
• Autoimmune
• Ophthalmic
• Gastrointestinal
• Dermatology
• Hematology/Blood
• Liver/Hepatology
• Genetic
• Hormonal/Endocrine
• Women’s Health
• Reproductive
• Allergies

South Korea Pharmaceuticals Market, By Distribution Channel

• Hospital Pharmacy
• Retail Pharmacy
• Others