New driving force of the 4th Industrial Revolution
“The pharmaceutical industry is future driving force within the Fourth Industrial Revolution era. By developing new drugs, the industry leverages Korean economic growth expands high value added R&D and creates quality jobs.”
The pharmaceutical industry is a new driving force to lead the Fourth Industrial Revolution
The pharmaceutical industry is not only the collection of technology based on the Fourth Industrial Revolution, but also reviewed as a future growth engine to create higher value by generating quality jobs and innovation. The world pharmaceutical market is sustaining annual average of 5.2% growth with economic growth and increased medical demand, which currently reached total volume of KRW 1.20 quadrillion. Such volume is double or triples the volume of automobile and semi-conductor industry. The volume of Korean pharmaceutical market has surpassed KRW 20 trillion in 2016 due to launch of global new drug and impressive performance of exporting technology. The figure in 2016 recorded growth of 12.9% compared to the figure from the year before.
Size of global pharmaceutical industry
Size of Korean pharmaceutical industry
The pharmaceutical industry leverages overseas export and leads economical growth
Through global market expansion of Korean pharmaceuticals, the total export volume of pharmaceuticals was increased by 17.7% annually in last five years from 2013 to 2017. Especially the export volume of bio pharmaceutical products from 2012 to 2016 increased significantly per year by 30.7%. Increasing export volume by 34.8% compared to the year before, bio pharmaceutical products has a significant growth potential in the future and is expected to lead Korean economic growth as next generation driving force. Recognizing such potential, the Korean government included pharmaceutical and bio industry as 'high value generating future emerging industry development plan' of the 100 State Affair Tasks, and promised institutional support for the industry.
Pharmaceutical export performance by year (Unit: USD billion)
Pharmaceutical industry generates quality jobs
According to employment index of pharmaceutical industry, 5,400 to 6,100 jobs were generated per KRW 1 trillion of sales revenue, and to develop four blockbuster-level new drugs, about 150,000 to 170,000 jobs would be generated. Also according to data analysis by the Statistics Korea, amount of value added per person in pharmaceutical industry is about KRW 270 million, which is KRW 100 million more than a general manufacturing industry, and exceeded that of the electronics industry. Moreover, pharmaceutical industry has ratio of master's and doctoral degree among all researchers of 71.7%, which is doubly higher than 33.7% of general manufacturing industry.
Annual average increase of employment(%)
Youth employment increase rate by industry(%)
Ratio of Master's and Doctoral degree among researchers(%)