India Aims for Lucrative South Korean Pharma Market, Signs Agreement with Generic Drug Export Association

As India has the G20 presidency and South Korea is a member of the G20, the Korea Pharmaceuticals & Bio Manufacturers Association (KPBMA) in Seoul has inked a memorandum of understanding (MoU) with India. "The KPBMA has special significance, and the pact is aimed at information exchange, trade, and cooperation in the area of pharmaceuticals and biotechnology products, as well as to promote market access between the countries," Pharmexcil director general Uday Bhaskar told sources. Pharmexcil, India's top pharmaceutical export council, is a component of the Ministry of Commerce and Industry.

"Korea is a very important market in North East Asia (NEA) after China and Japan," Bhaskar explained. With 250 member businesses, the KPBMA, created in October 1945, represents the Korean pharmaceutical sector under the authority of the Ministry of Health and Welfare of Korea. It is an active trade body of South Korean pharmaceutical businesses that account for a significant portion of pharmaceuticals consumed in South Korea. The Memorandum of Understanding was signed on April 19. Pharmexcil organised the 'India Pavilion' at Korea Pharm & Bio, which was attended by 20 member exporters from April 18 to 21 in Korea. During the same event, Pharmexcil inked an MOU. According to a letter prepared by Bhaskar alerting Indian member companies of this development, the Korean government's cost-cutting policies and universal health coverage for the Korean population provide a strong opportunity for generic medications from India.

The export numbers for the previous fiscal year are also good. India's pharmaceutical exports to South Korea reached $166.94 million for fiscal year 2022-23, up 34% from $124.60 million in fiscal year 2021-22. During 2022, the South Korean Pharma Market is expected to be worth $22 billion, with generics accounting for 46% of the market ($10.18 billion), patented pharmaceuticals accounting for 36% ($8 billion), and over-the-counter medications accounting for 17% ($3.8 billion). Total exports account for approximately 43% of bulk drug and drug intermediate exports and 25% of final dosage formulations exports.

The NEA area has the most generic market share. The region is home to China, the world's largest manufacturer of generics, bulk pharmaceuticals, and drug intermediates. ​ The other two major markets in this region are South Korea and Japan. Both of these markets have a very robust generic manufacturing base, and Japan is also a big innovator. The region's generic market is expected to rise 11.78% by 2023, rising from $132 billion to $147.88 billion.