Korean pharmaceutical, bio industry eyes AI innovation

KPBMA President Noh Yun-hong

South Korea will be able to narrow its gap with the global pharmaceutical and biotech market using artificial intelligence (AI), according to Korea Pharmaceutical and Bio-Pharma Manufacturers Association (KPBMA) President Noh Yun-hong.

“Korea still lags behind the United States, the United Kingdom, and Japan in terms of drug research and development (R&D) capabilities, capital, and technological strength,” Noh said in an interview with Maeil Business Newspaper. “But this gap can be sufficiently narrowed by using AI and the healthcare data accumulated through Korea’s National Health Insurance system, supported by our advanced IT infrastructure.”

Noh, who was reappointed in 2025, noted that in terms of market size, Korea accounts for just about 1.4 percent of the global market and is ranked outside the top 10, but the gap with Italy (7th place, or around 2.2 percent), is not that large.

“With concentrated effort, surpassing Italy is achievable,” Noh said.

Founded in 1945, the KPBMA is celebrating its 80th anniversary this year. As part of its Vision 2030 initiative, the association has begun laying out strategic tasks for a second leap forward.

“The pharmaceutical and biotech industry is at a critical turning point,” the president said.

“Korea is already ranked 3rd globally when we only take the number of new drug pipelines into account, but there is still a long way to go in terms of global commercialization or success cases,” Noh said.

He emphasized that Korea’s vast high-quality medical data and IT infrastructure - built through the national health insurance system - can be combined with AI to rapidly close that gap.

As part of its AI-centered strategy, the association formed the Convergence AI Institute for Drug Discovery (CAIID) in early 2024 and is participating as the lead organization in the K-MELLODDY project - a joint initiative by the Ministry of Health and Welfare and the Ministry of Science and ICT.

The institute is currently organizing initiatives such as AI drug development competitions and the AI Pharma Korea Conference while providing tailored education programs aligned with industry demand via its AI drug development education platform, LAIDD.

LAIDD recently topped 10,000 registered users, while also running advanced courses and mentoring programs to position itself as a key hub for fostering AI drug development talent.

“The K-MELLODDY project is just the start for the digital transformation of the entire industry,” Noh said. “AI Institute for Drug Discovery is playing a central role in this effort.”

He added that the institute is considering evolving into a self-driving laboratory (SDL) - a lab that uses AI, robotics, and data to autonomously discover and develop drug candidates.

Noh also highlighted that institutional reform is just as important as AI and tech investment.

“For new technologies such as AI to deliver real results, they must be supported by a predictable regulatory environment,” he said. “If drug pricing or insurance policies change frequently, it becomes difficult for companies to commit to long-term investments spanning over a decade.”

Noh stressed the need for a system that fairly recognizes the value of new drugs, commenting that “a pricing structure that rewards innovation is essential now that we are entering the phase of actual new drug development.”

He pointed out that the current drug pricing system primarily focuses on price cuts, with upward adjustments being nearly impossible except in rare cases and indicating the need for pricing revision.

Regarding the high tariffs and drug price cuts recently proposed by U.S. President Donald Trump, Noh said, “Apart from contract development and manufacturing of bio medicines, Korea’s pharmaceutical exports to the United States are still relatively small.”

“The direct impact of tariffs should be limited,” he said.

Noh also emphasized the urgency of reducing dependence on China and India for active pharmaceutical ingredients while building a stable supply chain centered on essential drugs and vaccines.