Global pharmaceutical companies increased their investment in Korean clinical research by nearly 7% in 2023, reaching approximately 872.9 billion won ($640 million). This growth underscores Korea's increasing importance as a hub for clinical trials, particularly in cancer and rare diseases.
The Korean Research-based Pharmaceutical Industry Association (KRPIA) released its "2024 Survey Report on R&D Expenditure and Research Personnel" on Tuesday, based on a survey of 31 global pharmaceutical companies operating in Korea. The report highlights a sustained positive trend in clinical research investment and activity within the country.
Investment and Growth Trends
The 6.7% increase in investment from 2022 to 2023 translates to approximately 872.9 billion won dedicated to domestic clinical research, excluding R&D costs from overseas headquarters. Over the past five years (2019-2023), the average annual growth rate has been an impressive 15.9%. Despite ongoing concerns about Korea’s healthcare crisis, KRPIA officials remain optimistic about the resilience of clinical research in the country.
In 2023, global pharmaceutical companies provided clinical research medicines to domestic patients worth about 320.8 billion won. The total number of clinical trials conducted that year was 1,723, a 7.7% increase from the previous year. Phase 3 trials saw the largest increase, rising by 12.8% to 644 trials. Early-phase clinical trials (phase 1 and 2) also experienced substantial growth, with average annual increases of 14.5% and 7.9%, respectively, over the past five years. This growth indicates a growing recognition of Korea's clinical trial capabilities and quality on a global scale.
Focus on Cancer and Rare Diseases
The report also highlighted the continued focus of global pharmaceutical companies on rare and severe diseases. In 2023, cancer research accounted for 69.0% (975 trials) of major clinical research, while rare disease research made up 13.5% (191 trials). Over the past five years, cancer research has grown by 10.0%, and rare disease research has increased by 35.3%.
Impact on R&D Personnel and Healthcare
According to the KRPIA, this sustained investment has fostered domestic expertise and supported the growth of the pharmaceutical industry. In 2023, the total number of R&D personnel reached 2,299, reflecting steady growth since 2018. Clinical research personnel constituted 52.9% of the R&D workforce.
Kim Dong-wan, head of the General Clinical Trial Unit at Seoul National University Hospital, emphasized the importance of these trials, stating, "New clinical trials incorporating advanced technologies are playing a key role in improving healthcare quality, patient survival rates, and quality of life. It is crucial for Korea to establish systems that support the active conduct of such trials."
The KRPIA official added, "For global new drugs with confirmed clinical efficacy and safety, institutional support is essential for faster reimbursement and pricing decisions, ensuring these treatments reach patients in urgent need more quickly."
