This year, domestic biohealthcare companies are approaching 20 trillion won in revenue for the first half of the year, continuing their growth trend. However, the pace of growth has slowed compared to last year. Research and development (R&D) investments surged by 18.7%, outpacing revenue growth as companies focus on securing future growth drivers.
The Korea Bio Association announced on September 30 the results of its analysis of the semi-annual reports from 82 listed companies in the biohealthcare sector included in the Korea Exchange (KRX) industrial index, titled '2026 Q2 and First Half Trends of Listed Biohealthcare Companies.'
For the first half of the year, total revenue reached 19.623 trillion won, marking a 13.1% increase compared to the same period last year, bringing it close to the 20 trillion won mark. Domestic sales rose to 10.785 trillion won (up 13.4%), while exports increased to 8.837 trillion won (up 12.6%), indicating simultaneous growth in both domestic and export markets.
By sector, pharmaceuticals grew by 12.5%, and medical devices saw an 18.7% increase. A representative from the association explained, "In the pharmaceuticals sector, the expansion of contract manufacturing organization (CMO) exports by large companies and the export achievements of mid-sized firms in biopharmaceuticals and active pharmaceutical ingredients (APIs) contributed to the revenue increase."
R&D expenditures for the first half amounted to 2.1968 trillion won, an 18.7% increase from the previous year, exceeding the revenue growth rate (13.1%) by 5.6 percentage points.
In terms of sectors, R&D spending in pharmaceuticals rose by 19.9%, while medical devices increased by 2.5%. Notably, the increase in R&D spending in the pharmaceuticals sector is significant, indicating that companies are reinvesting profits earned abroad into new drug development to strengthen their foundational capabilities.
Regarding workforce status, the total number of employees in the first half was 48,725, a 3.7% increase from the previous year. Among them, R&D personnel numbered 8,055 (up 16.5%), reflecting a 1.1% increase.
Despite the overall growth, the pace of growth has slowed compared to last year. The revenue growth rate for the first half of this year is 13.1%, down 7.2 percentage points from the same period last year (20.3%).
Operating profit margins also decreased to 19.6%, down 0.3 percentage points. While the medical devices sector saw a 5.0 percentage point increase in operating profit margins due to improved profitability among mid-sized and small enterprises, the pharmaceuticals sector experienced a decline of 0.8 percentage points, indicating a deterioration in profitability.
In the second quarter alone, revenue increased by 10.4%, and R&D expenditures rose by 18.9%.
* This article has been translated by AI.
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