Endemic Wings Clipped for 'K-Bio'... Q1 Exports Down 24%

[Image source=Yonhap News]

The 'K-Bio', which had significantly expanded its presence during the COVID-19 pandemic, is now seeing its export market shrink as the situation moves into an endemic phase (periodic outbreaks of infectious diseases). Experts advise that K-Bio must discover new growth engines for sustainable development.

According to the '2023 Q1 Health Industry Export Performance' report released on the 22nd by the Korea Health Industry Development Institute (KHIDI), health industry exports recorded $5.27 billion, a 24.2% decrease compared to the same period last year. The health industry is broadly composed of pharmaceuticals, medical devices, and cosmetics. Han Dong-woo, head of the Health Industry Innovation Planning Division at KHIDI, stated, “The easing of quarantine measures worldwide due to the stabilization of COVID-19 has impacted the decline in domestic health industry exports.”

Pharmaceutical exports fell 15.2% to $1.9 billion due to a sharp drop in vaccine exports. Vaccines, which saw concentrated demand last year due to the spread of the Omicron variant, decreased by 77.4% to just $100 million in Q1 this year. During the same period, Australia, which purchased $310 million worth of vaccines, reduced its imports to $1,000, a 95.9% decrease, and Taiwan halted imports of Korean vaccines (from $100 million to $0). Following the World Health Organization’s (WHO) declaration on the 5th lifting the COVID-19 Public Health Emergency of International Concern (PHEIC) after 3 years and 4 months, a similar trend is expected in Q2. Biopharmaceuticals and toxoids increased by 6.5% ($940 million to $1 billion) and 128.8% ($310 million to $700 million), respectively.

Medical device exports also dropped 48.3% to $1.48 billion. Globally, as the COVID-19 risk level declined, demand for COVID-19 diagnostic kits decreased, causing in vitro diagnostic devices to fall 80.3% to $330 million. Exports to the United States, Japan, and Canada decreased by 56.7%, 90.2%, and 99.5%, respectively. However, exports of radiography equipment and medical laser devices increased due to the endemic effect, rising 23.4% ($140 million to $170 million) and 10% ($86 million to $94 million), respectively.

Cosmetics exports slightly increased due to the effects of returning to daily life. Exports of basic skincare products and color cosmetics rose by 2.8% and 14.6%, respectively, resulting in a total cosmetics export value of $1.89 billion, up 2.3%.

Han Dong-woo, head of the Health Industry Innovation Planning Division, stated, “It is a time when the K-Bio industry needs various efforts to break through new health industry export opportunities as it moves beyond the influence of COVID-19.”

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