Seoul holds emergency meeting with pharma exporters to address US tariffs

The government held an emergency meeting with pharmaceutical export companies to prepare countermeasures against U.S. tariffs.

The Ministry of Health and Welfare and the Ministry of Trade, Industry and Energy co-hosted an emergency meeting on Monday with five pharmaceutical export companies, the Korea Health Industry Development Institute, the Korea Trade-Investment Promotion Agency, the Korea Pharmaceutical and Bio-Pharma Manufacturers Association, the KoreaBIO, the Korea Biomedicine Industry Association, and the Korea Pharmaceutical Traders Association.

The five pharmaceutical companies attending the meeting were SK Biopharm, Samsung Biologics, Lotte Biologics, Daewoong Pharmaceutical, and Celltrion.

Chaired by the director-general of the Health Industry Policy Bureau at the Ministry of Health and Welfare, the meeting was arranged to listen to companies' difficulties stemming from the U.S. tariff imposition trend and explore practical government support measures for businesses.

On Sept. 25 (local time), U.S. President Donald Trump mentioned via social media his plan to impose a 100 percent tariff on pharmaceutical products starting Oct. 1, unless the products are manufactured in U.S.-based pharmaceutical plants or are currently under construction.

In response, the government is providing 13.6 trillion won ($9.6 billion) in emergency management funds and a record 270 trillion won in trade insurance to stabilize the operations of companies affected by tariffs. It is also supporting export vouchers by doubling logistics cost support, expanding support for overseas exhibitions and delegations, and aiding the development of alternative markets.

Additionally, the government plans to fully support export industries facing difficult external conditions, including U.S. tariffs, by expanding the export-specific support budget for the bio-health industry's global expansion. This includes establishing overseas bases, consulting support, covering global marketing and transportation costs, and expanding open innovation support. The budget for next year's government plan will be increased by 34.9 billion won.

In this context, corporate representatives attending Monday's meeting expressed concerns that U.S. government tariffs would increase corporate burdens and weaken export competitiveness. They requested active government support, including expanded assistance for entering the U.S. market and strategies to diversify export destinations.

“Should the U.S. government finalize tariff imposition, we will implement government support without delay to minimize damage to Korean companies and actively reflect their needs,” Director-General Jeong Eun-young said. “Amid external crises, we will pool capabilities in responding to tariffs through public-private cooperation to sustain the favorable trend in pharmaceutical exports.”