"If the Russia-Ukraine Conflict Prolongs, Medical Device Exports Will Inevitably Suffer"

Korean Pharmaceutical and Bio Association Bioeconomy Research Center Analysis
Russia and Ukraine Rank 5th in Korea's Medical Device Imports
"Uncertainty Due to Additional Russian Economic Sanctions"

Ukrainians residing in Korea are marching near the Russian Embassy in Jung-gu, Seoul on the 27th, condemning Russia's invasion of Ukraine. Photo by Dongju Yoon doso7@

[Asia Economy Reporter Lee Gwan-joo] An analysis has emerged suggesting that if Russia's invasion of Ukraine prolongs, it could significantly impact the domestic medical device industry. In the pharmaceutical sector, delays or suspensions of multinational clinical trials may occur, but short-term effects are not expected.

According to the analysis paper titled "Impact of the Russia-Ukraine Situation on the Healthcare Industry," released on the 1st by the Bioeconomy Research Center of the Korea Pharmaceutical and Bio-Pharma Manufacturers Association, the export share to Russia and Ukraine in the pharmaceutical sector is minimal. The Russian pharmaceutical market was valued at $28.2 billion in 2020, making it the second-largest market in Europe after Germany ($40.2 billion). Although imports account for 56.3%, trade with Korea is not substantial. Ukraine mainly imports pharmaceuticals from China, India, Russia, Spain, and Switzerland, with minimal trade with Korea.

However, the situation differs somewhat in the medical device sector. As of last year, there were about 400 medical device manufacturers in Russia, and imports account for over 70% of the Russian medical device market. Korea ranks as the fifth-largest importer to Russia, following China, Germany, the United States, and Japan. Russia imported $230 million worth of medical devices from Korea in 2020. Ukraine also relies on imports for about 90% of its medical devices, with Korea ranking fifth after China, Germany, the United States, and Japan, trading $23 million in 2020.

Furthermore, as of the 25th of last month, there are 540 ongoing clinical trials in Russia and 251 in Ukraine. Some Korean pharmaceutical companies are known to be conducting clinical trials in Russia and Ukraine. Since clinical trials can be conducted in other countries as well, direct significant damage is not expected, but some delays or suspensions are anticipated.

The center analyzed, "Korea's export share of medical devices to Russia and Ukraine ranks fifth, which is relatively high," adding, "If the situation continues, damage to Korean companies' medical device exports to Russia and Ukraine is inevitable." They also noted, "There is uncertainty due to potential additional economic sanctions against Russia in the future."

This content was produced with the assistance of AI translation services.