While the global pharmaceutical industry is facing enormous challenges in operation and R&D innovation due to the changing global trend, the South Korean pharmaceutical industry is also facing severe difficulties such as reduced production capacity, tightened regulations, insufficient innovation, and patent expirations. In order to ensure sustained innovations to meet diverse needs of patients, governments, insurance providers, and the market for innovative medicines, pharmaceutical companies have placed a strong emphasis on exploring areas of unmet medical needs. With the support of the South Korean government, these companies are investing approximately 65% of their annual net revenues to secure the production of innovative medicines.

At the same time, South Korea's biotech and pharmaceutical industries are actively engaged in clinical studies, with the market share of clinical trials led by South Korea climbing from eighth place in 2019 to sixth place in 2020. Over the past few years, the global pharmaceutical and biotech industries have together witnessed how South Korea is becoming increasingly active in the global market as a country with its drug development capabilities.