Korean exports of medicine, cosmetics hit record high in Q3

Korea’s health industry exports in the third quarter totaled $6.34 billion, an increase of 22.5 percent from a year earlier.

The foreign shipments of cosmetics reached $2.58 billion (up 19.2 percent), followed by pharmaceuticals’ $2.38 billion (up 43.5 percent) and medical devices’ $1.37 billion (up 1.8 percent).

The Korea Health Industry Development Institute (KHIDI) released third-quarter export data for pharmaceuticals, medical devices, and cosmetics on Friday.

Specifically, exports to Europe, including Hungary, Germany, and Belgium, increased sharply. Exports of basic cosmetic products to the U.S. and Japan expanded, contributing to the largest quarterly growth for both cosmetics and pharmaceuticals. Medical devices’ trade balance turned positive for the first time since the first quarter of 2022, thanks to increased exports of in vitro diagnostic devices.

Pharmaceutical exports grew 43.5 percent year over year to $2.38 billion, driven by an increase in exports of biopharmaceuticals and vaccines.

Exports of biopharmaceuticals, which accounted for about 61.3 percent of total pharmaceutical exports, recorded the best quarterly performance at $1.46 billion, up 74.7 percent from a year ago. Exports to Hungary saw a dramatic increase of 1,448.5 percent to $500 million, while shipments to Germany and Belgium rose by 160.3 percent and 216.9 percent, reaching $180 million and $120 million, respectively.

Vaccine exports increased 39.3 percent to $80 million, led by an increase in shipments to Middle Eastern and African countries, including Yemen ($10 million compared to nothing last year), Nigeria ($10 million, +1,875.6 percent), and Sudan ($10 million, +501.9 percent).

Medical device exports grew 1.8 percent to $1.37 billion, driven by increased shipments of vitro diagnostic and laser medical devices.

Exports of in vitro diagnostic devices, which accounted for about 12.7 percent of total medical device exports, were led by Japan ($10 million, +274.1 percent) and Australia ($10 million, +101.6 percent), while exports of laser medical devices ($120 million, +18.3 percent) were led by the U.S. ($30 million, +44.9 percent) and Thailand ($10 million, +267.3 percent).

Conversely, exports of dental implants and radiography devices, the main export items, decreased by more than 5 percent year over year.

“In the third quarter of 2024, health industry exports were led by cosmetics and pharmaceuticals, which achieved the largest quarterly growth following the first half of the year,” said Lee Byung-kwan, head of KHIDI’s Biohealth and Start-up Center.. “The growth of health industry exports is expected to increase further in the fourth quarter as demand for key items, including biopharmaceuticals and basic cosmetic products, continues to grow.”