South Korea’s Biotech Sector Surges 9.8% Despite Global Trade Challenges

South Korea’s biotechnology industry reported a significant output growth of nearly 10 percent in 2024, reaching 22.92 trillion won (approximately USD 15.7 billion). This increase marks a rebound from a previous decline of 12 percent in 2023, according to data released by the Ministry of Trade, Industry and Energy (MOTIE) on November 11. The figures, compiled by the Korea Biotechnology Industry Organization (KoreaBIO), reflect a robust recovery in the sector despite ongoing global trade uncertainties.

The growth in the biotechnology sector can be attributed to various product categories. Production of therapeutic antibodies and cytokine products accounted for 4.86 trillion won, while biomanufacturing and contract services followed closely at 3.21 trillion won. Additionally, feed additives contributed 3.11 trillion won to the overall production.

Export Growth and Investment Surge

Exports from the biotechnology sector rose by 17.1 percent year-on-year in 2024, indicating strong demand for South Korean biotech products in the global market. Furthermore, investments in research and development (R&D) and facilities soared by 46.1 percent, showcasing the sector’s commitment to innovation and expansion.

A representative from MOTIE emphasized the government’s intention to enhance support for companies engaged in R&D, production, and exports. “The bio industry will play a crucial role in our economic growth and job creation,” the official stated, highlighting the sector’s importance in South Korea’s economic landscape.

Market Reactions and Broader Economic Context

Simultaneously, the South Korean stock market reacted positively to these developments. On the same day, the benchmark Korea Composite Stock Price Index (KOSPI) opened higher, rising by 89.06 points, or 2.19 percent, within the first 15 minutes of trading. This uptick followed positive overnight performances on Wall Street, where the Dow Jones Industrial Average increased by 0.81 percent, and the Nasdaq Composite advanced by 2.27 percent.

The optimism surrounding the stock market was buoyed by potential resolutions to the ongoing U.S. government shutdown, with bipartisan efforts underway to end the impasse. Major South Korean companies, including Samsung Electronics, which saw a 3.88 percent increase in share price, and Hyundai Motor, which rose by 0.74 percent, contributed to the overall market momentum.

As South Korea’s biotechnology industry continues to flourish, it illustrates the resilience of the sector amid global economic challenges. The government’s proactive measures and the industry’s strong performance suggest a promising outlook for future growth and development.