South Korea climbs to third in global drug development pipeline

South Korea has consolidated its position as a leading player in pharmaceutical innovation, ranking third globally for drug development pipelines in 2026, behind only the US and China, according to industry data.

Analysis by the Korea Bioindustry Association, drawing on figures from Citeline, shows the country accounts for 14.2 per cent of the global pipeline. While this remains well behind the US at 50.8 per cent and China at 31.1 per cent, it places South Korea ahead of Japan and several European markets long regarded as industry strongholds.

The findings highlight the growing depth of research activity in what has often been perceived as a market focused on incremental innovation. “With a larger pipeline than Japan, Korea is more than deserving of attention,” the report noted, pointing to a shift towards more substantive new drug development.

Among domestic groups, Daewoong Pharmaceutical leads with 58 pipeline candidates, underlining its central role in the country’s so-called “K-bio” sector. It is followed by Dong-A ST (51), Hanmi Pharmaceutical (45), Celltrion (44) and Chong Kun Dang (44).

Daewoong has also distinguished itself through its investment profile, allocating nearly 16 per cent of revenue to research and development last year. The company has sought to fund future innovation through established products such as Fexuclue, a treatment for gastro-oesophageal reflux disease, and Enbloc, a diabetes therapy, effectively using commercial revenues to support its development pipeline.

Globally, the pharmaceutical sector appears to be entering a more selective phase. The total number of pipeline candidates fell by about 3.9 per cent year on year, the first decline since the mid-1990s, even as the number of drugs in clinical development increased. This suggests companies are concentrating resources on later-stage assets with higher probabilities of success rather than expanding early-stage portfolios.

The year also marks a structural shift in the nature of drug development. Biologics, including antibody-based therapies and antibody-drug conjugates, now account for half of all pipeline assets, overtaking traditional small-molecule drugs for the first time. The transition underscores a broader industry pivot towards more complex, targeted therapies, reshaping the competitive landscape for pharmaceutical companies worldwide.