Healthcare sector exports continue to boom

By Lee Kyung-min

Healthcare business exports increased 13.4 percent in the first half of this year, generating 6.1 trillion won ($5.4 billion) in profit, government data showed Monday. The number of jobs created in the sector increased 3 percent, to 819,000, up 24,000 from a year earlier.

According to data from the Ministry of Health and Welfare, the total exports comprising medicine, medical equipment and cosmetics doubled from 5.6 trillion won in 2012 to 11.5 billion won last year.

The sector generated 1.1 trillion won in annual surplus last year. Nearly a 500 billion won surplus has been recorded in the first half of this year.

Cosmetics sales saw the largest jump to 2.6 trillion won, up 19.8 percent from a year earlier.

Skincare products accounted for more than half, or 52.7 percent, followed by cleansing products and makeup products.

The Chinese were the biggest buyers of Korean cosmetics, followed by customers living in Hong Kong, America, Japan, Canada, the Netherlands, and France.

Exports of cosmetics products surged more than two-fold over the past four years, due partly to the steady popularity of the Korean wave, or hallyu.

The ministry said it is significant that the Chinese remain the biggest buyers of Korean cosmetics given the ongoing diplomatic row over the deployment of the Terminal High Altitude Area Defense (THAAD), the anti-missile system, to Korea.

Other than cosmetics, exports of medical equipment increased 11.7 percent to 1.9 trillion won, and that of medicine increased 19.8 percent to 1.7 trillion won.

Korean pharmaceutical products are gaining popularity in Europe, the ministry said.

In 2013, Celltrion, a bio-pharmaceutical firm, won approval from the European Medicines Agency to sell its biosimilar, Remsima. Sales of Korean pharmaceutical products to Europe have grown since.

Medical service promotion meetings in recent years have contributed to the expansion of Korean healthcare companies into foreign markets.

The health ministry said exports of healthcare businesses is expected to grow further following approvals of South Korean pharmaceutical products in the U.S. and other countries.

Separate data from the Korea Health Industry Development Institute (KHIDI) showed Korea’s exports of medical and healthcare equipment to so-called “BRICS,” an acronym for the five emerging economies of Brazil, Russia, India, China and South Africa, have grown 20 percent since 2008.

Health and Welfare Minister Park Neung-hoo said, “The government will continue to support the sector, which the ministry earlier designated as a core, innovative growth engine of the country.”