South Korea has the potential to enhance its bio-health industry competitiveness by utilizing its abundant high-quality bio data with artificial intelligence (AI), as per a report from the Bank of Korea (BOK). The report highlights that South Korea is trailing behind in innovative drugs and advanced medical devices compared to leading nations, with the global bio-health market projected to grow at a 5 percent annual rate over the next five years due to factors like aging populations. From 2016 to 2023, South Korea ranked ninth globally in bio-health patent applications filed in the United States and fourth overall across all sectors.
AI has the capability to cut new drug development timelines by up to 50 percent, reduce research and development costs significantly, and open up new markets, according to the report. South Korea, with health insurance and clinical data from 50 million individuals under a single national health insurance system, possesses a rare and valuable resource globally in the AI era. To leverage these advantages, the BOK has suggested a national bio data approval system that would review and approve data usage for research meeting public interest criteria, alongside easing regulations for approved projects.
Despite ongoing global trade uncertainties, South Korea’s biotechnology industry output surged by nearly 10 percent in 2024 compared to the previous year, reaching 22.92 trillion won (US$15.7 billion), as reported by the Ministry of Trade, Industry and Energy (MOTIE) based on data from the Korea Biotechnology Industry Organization (KoreaBIO). This growth rebounded from a 12 percent decline in 2023, indicating a renewed growth trajectory in the sector.
