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BIOPHARMACEUTICAL Korea Where Success Knows No Limits 2 Index 1. Industry Overview3 2. Competitive Standing and Outlook9 3. Government Policies14 4. Status of Foreign Direct Investment15

Market size & production trends 3 Recent developments in Korea’s pharmaceutical industry Unit : KRW mn.

Export & import trends 4 Export & import trends in Korea’s pharmaceutical industry Source: Korea Health Industry Development Institute (2014), Analysis of Korea’s Pharmaceutical Industry (2013) Unit : KRW mn.

Human resource trends 5 Number of people employed in Korea’s pharmaceutical industry Korea Health Industry Development Institute (2014), Analysis of Korea’s Pharmaceutical Industry (2013) Unit : People

Market size & production trends 6 Market size and production trends of the biotech industry Source: IMS Health (2012) Unit : KRW mn.

Number of biotech companies 7 Changes in number of biotech companies Source: Biotech Industry Study (2014) Unit : Companies Other

Human resource trends 8 Workforce structure of the biotech industry Unit : People Source: Biotech Industry Study (2014) Other Biochemicals

9 Size and growth outlook of the global biotech market Source: IMS Health (2012) CAGR: 9.7% Outlook of the global biotech market Unit : USD bn.

Outlook of the domestic biotech market 10 Korea’s in vitro diagnostic medical device (IVD) market Source: Ministry of Trade, Industry & Energy, Five-year Plan for Technology Innovation (2013) Bioelectronics Bioinformatics & biological assay 1,4061,3551,5311,7301,9552,209 Bio diagnostics (20% of the diagnostic test market) ,125 Total2,3752,5342,8643,2353,6754,174 Unit : KRW mn.

Most promising sector 11 Outlook for the Korean therapeutic antibodies market Source: Ministry of Trade, Industry & Energy, Five-year Plan for Technology Innovation (2013) Unit : KRW mn

Increased R&D investments 12 Unit : KRW million R&D investments by Korean pharmaceutical companies Source: Korea Health Industry Statistics System (KHISS) Korea’s biotech R&D investments Source: Biotech Industry Study (2014) Unit : KRW million

Increased R&D concentration 13 Unit : % R&D concentration among Korean pharmaceutical companies

Govt. efforts in the pharmaceutical industry Five-year Comprehensive Plan Streamlined procedures for new drug registration The PB 300 Project The PB 300 Project 14

15 Source: Biotech Industry Study (2014) Unit: KRW 100 mn CAGR Government R&D 123,437137,014148,9029.8% Biotech R&D 20,11223,25225, % Biotech R&D as % of government R&D % of government R&D 16.3%17.0%17.3%- Government efforts in the biotech industry Government R&D investments by segment

Success Cases 16 CelltrionCelltrion AprogenAprogen Samsung BioLogics Dong-A Pharm GenexineGenexine Success Cases 16