Biohealth Exports Reach Record High of USD 27.9 Billion in 2025

- Pharmaceutical exports surpass USD 10 billion for the first time; cosmetics reach a record high for the second consecutive year -

- MOHW targets USD 30.4 billion in exports this year, with strengthened support for export growth -

- MOHW Vice Minister hears industry views on expanding biohealth exports -

The Ministry of Health and Welfare (MOHW, Minister Jeong Eun Kyeong) held a meeting with industry representatives on biohealth export promotion on Tuesday, March 3, at 2 p.m., in the main conference room on the 16th floor of City Tower in Jung-gu, Seoul.

Chaired by Vice Minister Lee Hyung-hoon, the meeting was held to commend biohealth export companies for their record-high export performance in 2025, share industry trends, and discuss government support measures in response to challenges raised by companies on the ground. Representatives of exporting companies in biopharmaceutical, medical devices, and cosmetics,* along with relevant industry associations, attended.

   * Twelve companies attended, including: (Pharmaceuticals) Samsung Biologics, GC Biopharma, HK inno.N, Alteogen; (Medical devices) CG Bio, VUNO, Meerecompany, WONTECH; (Cosmetics) Olive Young, Cosmax, Goodai Global, Lilycover.

The meeting began with a presentation on the “2026 Outlook and the Export Promotion and Support Plan,” followed by an open discussion in which participating companies shared their challenges and proposed policy improvements.

The highlights of the “2026 Outlook and the Export Promotion and Support Plan” are as follows.

2025 Export Performance

Despite uncertainties such as tariffs in 2025, biohealth exports—including biopharmaceuticals, medical devices, and cosmetics—reached USD 27.9 billion, marking a 10.3 percent increase from the previous year and the highest level on record. The biohealth industry ranked eighth among Korea’s major export industries.

   * 2025 export performance by major industry: ① Semiconductors (USD 173.4 billion), ② Automobiles (USD 72.0 billion), ③ General machinery (USD 46.9 billion), ④ Petroleum products (USD 45.5 billion), ⑤ Petrochemicals (USD 42.5 billion), ⑥ Shipbuilding (USD 31.8 billion), ⑦ Steel (USD 30.3 billion), ⑧ Biohealth (USD 27.9 billion). 

Biohealth Industry Export Value (2021–2025)

Pharmaceutical exports surpassed USD 10 billion for the first time, reaching USD 10.4 billion and setting a new record. This growth was driven by biopharmaceuticals*, which account for 62.6 percent of total pharmaceutical exports, as companies expanded export markets primarily in the United States and Europe, leading to nearly a tenfold increase over the past decade. By destination, the United States, Switzerland, and Hungary were the leading markets, accounting for 39.5 percent of total exports, with steady growth concentrated in advanced markets.**

   * (Biopharmaceutical exports) USD 670 million in 2015 → USD 3.49 billion in 2020 (approximately fivefold increase) → USD 6.52 billion in 2025 (approximately tenfold increase)

  ** (United States) 16.0% in 2021 → 18.5% in 2025; (EU) 26.9% in 2021 → 33.2% in 2025

In the medical device sector, in vitro diagnostics returned to export growth, while general medical devices continued to expand steadily. By destination, the United States, China, and Japan remained the top three markets, accounting for 33.1 percent of total exports.

Cosmetics exports reached USD 11.4 billion in 2025, reflecting a 12.2 percent increase from USD 10.2 billion the previous year and setting a new record for the second consecutive year. This growth was driven by the high quality of Korean products and the continued global popularity of K-beauty, supported by the influence of Korean cultural content. The United States became the largest export market for cosmetics,* while market diversification** continued across Southeast Asia, the Middle East, and Europe.

   * Top three export markets (Unit: USD 100 million): United States (19.0 in 2024 → 21.8 in 2025), China (24.9 in 2024 → 20.2 in 2025), Japan (10.4 in 2024 → 10.9 in 2025)

  ** Share of exports to markets outside the top five (%): 19.5 in 2021 → 25.0 in 2022 → 31.5 in 2023 → 35.8 in 2024 → 43.4 in 2025

2026 Export Outlook

The MOHW announced a 2026 export target of USD 30.4 billion for the biohealth industry*, representing a 9.1 percent increase from the previous year.

   * (2026 targets) Pharmaceuticals: USD 11.7 billion (up 12.4%); Medical devices: USD 6.2 billion (up 2.7%); Cosmetics: USD 12.5 billion (up 9.5%)

Pharmaceutical exports are expected to continue growing, driven by domestically produced biopharmaceuticals, on the back of the expanding global biopharmaceutical market* and Korea’s world-leading capabilities in contract development and manufacturing organization (CDMO).

   * Contributing factors include increased biosimilar development following the expiration of patents for 58 original biopharmaceutical products by 2032, and policy efforts in the United States and the European Union to encourage biosimilar prescribing.

Medical device exports are expected to expand in both advanced and emerging markets, particularly for AI-enabled ultrasound imaging systems and radiography equipment, as aging populations and the AI transformation increase demand for improved diagnostic accuracy and efficiency. Cosmetics exports are also projected to maintain steady growth in major markets, supported by rising global recognition of K-beauty and expanded access through both online and offline channels.

Export Promotion and Support Plan

The MOHW will invest KRW 233.8 billion*—3.5 times more than last year—to actively foster the biohealth industry and address export uncertainties by promoting investment, strengthening supply chains, and supporting global expansion through regulatory support, consulting, marketing, and the establishment of overseas bases.

   * KRW 68.5 billion in 2025 → KRW 233.8 billion in 2026 (up KRW 165.3 billion, 241.3%)

1. Biopharmaceuticals

1) Strengthening industry competitiveness by creating a more supportive investment environment

Based on industry recommendations and an analysis of past program performance, the Ministry will improve the Innovative Pharmaceutical Company certification system for firms with strong R&D investment track records. It will also continue efforts to establish a KRW 1 trillion mega fund to support new drug development, helping Korea’s domestic pipelines* progress through to global commercialization.

   * Number of pipelines by country (2024): (1) United States 11,200; (2) China 6,098; (3) Korea 3,233

In particular, a new KRW 150 billion dedicated fund will be launched this year to support Phase III clinical trials, which typically require the largest investment in the drug development process. In addition, more than KRW 1 trillion in national health and medical R&D investment is expected to catalyze expanded private-sector R&D investment.

2) Revitalizing the industrial ecosystem by strengthening supply chains

To proactively address supply chain risks in the biopharmaceutical sector, the Ministry will establish an integrated stabilization framework, including support for securing raw and ancillary materials, assistance for manufacturers of medicines at risk of supply disruptions, and support for stockpiling essential medicines.

① [New] Support for stabilizing the supply of biopharmaceutical raw and ancillary materials (10 companies, KRW 10 billion)

② [New] Support for diversifying raw material sourcing (10 companies, KRW 1.5 billion)

③ [Expanded] Support for the production of medicines at risk of supply disruptions (4 companies, KRW 3.8 billion)

④ [New] Support for stockpiling essential medicines (5 companies, KRW 0.5 billion)

⑤ [New] Support for advancing manufacturing for high-potential export pharmaceuticals (15 companies, KRW 8.1 billion)

3) Expanding support for global market entry and export diversification

To move beyond the traditional focus on generics and biosimilars and accelerate entry into global markets centered on innovative new drugs, the Ministry will strengthen end-to-end support, including collaborative open innovation, commercialization consulting, domestic accelerator programs (inbound), and expansion into global strategic hubs (outbound).

The MOHW will launch the K-Biopharma Next Bridge* program to facilitate collaboration between Korean companies with promising technologies and leading global firms interested in the Korean market. It will also run stage-specific open-innovation growth programs** and enhance consulting support on country-specific regulatory changes, as well as patents, legal matters, taxation, customs, and diversification of distribution channels.

   * [Roche] Korea–Switzerland Bio Pass (4 companies); [AbbVie] Biotech Innovator Award (2); [Amgen] Golden Ticket (2); [Novo Nordisk] Partnering Day (3); [MSD] Partnering Day (5); [AstraZeneca] Project Nova (rolling recruitment)

   ** Before CDA signing: KRW 200 million × 20 companies → After CDA/MTA signing: KRW 400 million × 8 companies → After technology-transfer/join-research agreements: KRW 800 million × 4 companies

Domestically, accelerator programs* will be operated to improve the commercialization success rate of technology-based startups. Support for companies entering the CIC Boston will be expanded (30 companies in 2025 → 40 in 2026) to help establish a foothold in the U.S. market. Furthermore, networking activities―such as export consultation meetings, trade missions, and participation in global medical conferences―will be strengthened to help companies secure overseas distribution channels. 

   * (JLABS KOREA) Introduced in 2024; selects 12 companies annually (providing scale-up support aligned with global accelerator programs; with new R&D support to be added in 2026). Also supports Korean mentor companies linked to global programs.

2. Medical Devices

1) Creating an innovation ecosystem to boost competitiveness

The MOHW will foster an innovation ecosystem centered on the Comprehensive Support Center for the Medical Device Industry, which provides end-to-end support―from R&D through commercialization and overseas expansion. It will strengthen tailored business consulting services and provide more targeted, in-depth information through the Medical Device Industry Integrated Information System and the Medical Device Consulting Council (MDCC).*

   * The MDCC comprises 202 external experts across eight fields, including licensing and regulatory affairs, R&D and clinical trials, overseas expansion, commercialization, and legal and accounting services.

In addition, through the global open innovation initiative “New Impact Korea,*” which promotes collaboration with global companies, hospitals, and investment institutions, the Ministry will strengthen technology validation and market connections for Korean firms. It will also host MedTech Insight to systematically share industry trends and regulatory and market insights―helping companies develop strategies grounded in on-the-ground needs and laying the foundation for the sustainable growth of Korea’s medical device industry.

   * In cooperation with MedTech Innovator APAC, the largest medical device and digital health accelerator in the Asia-Pacific region, 16 promising Korean companies will participate in discussion-based pitches and a global conference (March 20, Sono Felice Convention, Seoul).

2) Enhancing the export potential of Korea’s medical device industry

The Ministry will expand new initiatives to strengthen the competitiveness of the medical device industry. It plans to provide focused support for the rapid commercialization of AI-enabled products and to establish an AI-powered surgical robotics innovation lab (2026–2030) to accelerate the commercialization of innovative technologies and strengthen competitiveness in next-generation surgical robotics.

This year, six hospital-based demonstration support centers will continue to operate, providing expert consulting and matching with clinicians to support clinical trials and real-world evaluations. These efforts will help generate clinical evidence and support entry into both domestic and overseas markets.

3) Strengthening market-tailored export support

To boost medical device exports, the MOHW will expand market-specific support for major overseas destinations. It will support 10 companies in entering the U.S. biotech cluster in Houston* to facilitate locally based collaboration for global expansion, and will provide up to KRW 200 million per company per year to cover regulatory compliance costs essential for overseas market entry.

   * Texas Medical Center (TMC), Houston, Texas: the world’s largest medical cluster, home to more than 50 hospitals, research institutes, and medical schools

In addition, to address uncertainties in global supply chains, the Ministry will support marketing and export-related expenses to help companies secure stable distribution channels. Starting this year, it will also launch a “Global Education and Training Support Program for Medical Devices” for medical professionals overseas, expanding hands-on experience with key products through training programs delivered in partnership with overseas medical institutions, education and training facilities, and international medical conferences―thereby enhancing product credibility and laying the groundwork for wider market uptake.

3. Cosmetics

1) Building infrastructure for global expansion

To develop cosmetics tailored to the skin characteristics of consumers in high-potential export markets, the Ministry will expand access to skin characteristic data* and provide support for raw-material quality testing (30 companies), efficacy and safety testing (15 companies), and facilities and equipment (5 companies), helping localize raw materials and stabilize supply chains.

   * Existing skin characteristic data from 16,694 individuals in 18 countries → additional data from 500 individuals in the Philippines to be collected in 2026

The Ministry will also support the passage of the Cosmetics Industry Promotion and Support Act,* currently pending in the National Assembly, to establish a legal foundation for developing the cosmetics industry.

   * Includes the establishment of a comprehensive cosmetics industry development plan, support for innovative cosmetics companies, and support for testing, research, and overseas expansion.

2) Helping companies overcome export regulatory barriers

The Ministry provides companies with frequently-used raw material safety assessment data (an additional 400 ingredients annually), which is required to prepare safety assessment reports requested by importing countries, through the Integrated Cosmetics Ingredient Information System.* This year, AI technology will be applied to make export-related information more accessible and user-friendly.

① Country-by-country regulatory ingredient database (65 countries; 47,000 ingredients)

② Safety assessment results database for marketed products and ingredients (3,712 items)

③ Toxicity prediction information for ingredients lacking safety assessment data (30,000 ingredients; 23 categories including hepatotoxicity and genotoxicity) 

Starting this year, the MOHW will also provide consulting on the registration of manufacturing facilities for over-the-counter (OTC)* products (25 companies) to strengthen support for exports of functional cosmetics to the United States.

   * In the United States, unlike in Korea, sunscreen, acne treatment, and hair loss treatment products are classified as OTC products.

3) Supporting export diversification and easing logistics challenges 

To expand export channels, the Ministry will continuously update the Cosmetics Industry Information Portal (Allcos) with global market trends and other export-relevant information,* provide consulting on licensing and approval procedures for 30 product categories, and produce explainer videos on overseas licensing and approval systems in six countries, including Canada, Australia, and Saudi Arabia.

   * Global Cosmetic Focus (market information for 14 countries annually); Export Guidebook (export procedures for 22 countries annually)

To boost exports to the United States, the MOHW will also prioritize support for storage, fulfillment services, and shipping at dedicated cosmetics logistics hubs in Los Angeles and seven other U.S. regions (300 companies).

4) Phased support for small and medium-sized cosmetics companies to expand overseas

The MOHW will implement a four-stage support program to help small and medium-sized cosmetics companies enter overseas markets. In the first stage, promising companies will be given opportunities to showcase their products to international visitors and buyers at K-Beauty Play (an experience-based promotion center) located in Korea.

   * Additional center to open in Seomyeon, Busan (May 2026); renovation of existing Myeongdong and Hongdae centers (second half of 2026)

In the second stage, pop-up stores (up to 10 days) will be set up in 10 countries where K-beauty is rapidly expanding (six more than the previous year) to serve as test beds for overseas expansion. The third stage will provide opportunities for local sales by operating permanent flagship stores in six countries (two more than the previous year) where marketability has been verified through pop-up operations.

In the fourth stage, K-Beauty Flagship Hubs will be newly launched in New York, the United States, and Paris, France, to support the global expansion of promising Korean companies and promote the latest K-beauty trends worldwide.

The Ministry will also support the production of company-specific, customized marketing content for use on distribution platforms and global social media to facilitate online overseas expansion.

Vice Minister Lee Hyung-hoon said, “Demand for Korean biopharmaceuticals, medical aesthetic devices, and cosmetics is rising rapidly, underpinned by Korea’s world-leading contract manufacturing capabilities and the global popularity of K-beauty. We will actively support the biohealth industry so that it can grow into a major export industry and serve as the next key growth engine after semiconductors.”

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