The Korea Healthcare Industry Development Institute (KHIDI) said on Wednesday that healthcare exports shrunk by 18.2 percent in the first half of 2023 compared to the same period last year to reach $10.87 billion.

Overall, healthcare industry exports consisting of pharmaceuticals, medical devices, and cosmetics, decreased from $13.0 billion in the first half of 2022 to $10.87 billion in the first half of 2023. 

Exports in the pharmaceutical sector fell by 9.5 percent from $4.25 billion in 2022 to $3.84 billion due to a decrease in vaccine exports despite increases in biopharmaceuticals and toxins and toxoids.

Biopharmaceuticals, which accounted for 53.1 percent of pharmaceuticals, brought in $2.04 billion, increasing by 22 percent compared to last year. 

In particular, exports of biopharmaceuticals to Europe and North America -- including the U.S., Hungary, Belgium, and the Netherlands -- increased significantly. Although toxins and toxoids accounted for a small portion, they increased by 87.2 percent reaching $150 million with  China, the U.S., and Brazil being the main markets. However, shipments of vaccines fell 78.5 percent from $780 million last year to $170 million due to the pandemic winding down worldwide. 

Likewise, the medical device sector also contracted by 40.9 percent from $4.99 billion in the first half of 2022 to $2.95 billion in the same period this year.

This was attributed to the decrease in global demand for in vitro diagnostic devices, a key export during the pandemic although shipments of implants and radiography devices increased.

Cosmetics, which accounts for 30 percent of healthcare industry exports, showed a small 0.6 percent bump up to $4.08 billion in the first half of 2023. This figure was explained by a drop in exports to China offset by an increase in exports to North America and Southeast Asia.

Overall, the decline in the Covid-19 related exports was pointed out as a key factor linked to the overall decrease in Korea's healthcare industry exports in the first half of the year. 

“We expect the export situation to improve with the increase in export of biosimilars, implants, and cosmetics,”  said Han Dong-woo, head of KHIDI’s Planning Division.