The South Korean pharmaceutical market is expected to rise by $1.8bn over the next four years, to reach $20.4bn in value by 2020, according to a recent report by GlobalData.
Entitled 'Healthcare, Regulatory and Reimbursement Landscape-South Korea', the report states the nation's focus on generics and other policy initiatives to encourage the industry will be the major driver of this growth.
The South Korean Government's significant investment in the generic drug market has helped the industry grow at a CAGR of 7% between 2008 and 2015. The generics market is further expected to gain impetus with a number of novel drugs set to lose patents by 2020.
The overall market in the country is estimated to grow rapidly because of the Free Trade Agreement with US, which has been effective since 2012, resulting in 80% lower import tariffs and duty-free bilateral trade for five years, according to GlobalData's senior industry analyst Adam Dion.
These initiatives will help drawing investments from multinational companies into the South Korean Pharmaceutical industry, says Dion.
Other government initiatives such as the Korean Small Business Innovation Research Programme and lifting the ban on medical services advertisements will add to the growing treatment populations, adds Dion.