Korean drug trade in May makes first surplus amid COVID-19

Korean drug export generates USD 589.47 million in a month

COVID-19 pandemic catches up in Europe and the U.S. and their demand on essential drug surged

In May, the Korean pharmaceutical export volume has hit the historic high.

 

It also was the first month to make pharmaceutical trade surplus in Korea.

 

Europe, where the COVID-19 started spreading later than in Korea, had a sharp surge of demand on essential drug that boosted the drug trade in Korea.

 

◆New historic high trade volume in two months, topping 700 billion won in a month According to the Korea Customs Service (KCS) trade statistics published on June 16, Korean-made pharmaceuticals generated USD 589.47 million (716.2 billion won) in May alone.

 

Compared to May 2019 (265.49 dollars), the figure multiplied by 2.2 times.

 

The data only accounted for pharmaceutical export volume, excluding the COVID-19 testing kit export.

 

Even against April 2020 (470.44 million dollars), the May export volume increased by 25.3 percent.

 

The record high monthly export volume reached in March 2020 (537.39 million dollars) was outdone in only two months.

 

The total pharmaceutical import volume in May reached 548.02 million dollars (approximately 665.8 billion won).

 

As the export volume exceeded the import volume, Korea had its first pharmaceutical trade surplus of 41.46 million dollars (approximately 50.4 billion won).

 

Monthly pharmaceutical export volume in May 2020 reached another record high in two months (Unit: USD 1,000) Source: Korea Customs Service

Korea’s pharmaceutical trade has never made surplus since 2000.

 

The yearly trade deficit marked 324.76 million dollars in 2000 and reached 1.21 billion dollars, 2.45 billion dollars and 2.63 billion dollar in 2005, 2010 and 2015, respectively.

 

Korea made trade deficit of 2.98 billion dollars last year.

 

Korea has made first pharmaceutical trade surplus in May 2020 (Unit: USD 1,000) Source: Korea Customs Service

The good news in the Korean pharmaceutical industry contrasts with other general industries struggling in trade.

 

In May, the overall export volume in Korea marked 34.9 billion dollars, dipping sharply by 24 percent against last year same month and by 4 percent against last April.

 

◆Ildong, Daewon and Hana urgently export essential drugs to Europe in distress Some analyze the COVID-19 pandemic has taken a rather positively effect on Korean drug manufacturing and export.

 

The U.S.

 

and Europe have experienced pharmaceutical shortage due to the pandemic continuing on, and Korean pharmaceutical companies have been swiftly answering those countries requesting for drug supplies.

 

In fact, Ildong Pharmaceutical announced on May 13 that an infection treating Cycin injection was exported to Luxembourg.

 

Daewon Pharmaceutical urgently exported intravenous anesthetic Freepol-MCT injection (propofol), Hana Pharm exported muscle relaxant Atra injection, heart stimulant Hana Dobutamine HCl injection, and anesthesia Vascam injection in April and May.

 

Although not included in May statistics, Bukwang Pharm has exported midazolam injection to France on May 6 as emergency drugs.

 

The industry experts also evaluate supply setback from China and India has also affected the increase in Korean pharmaceutical export.

 

First, the Chinese pharmaceutical supply was impeded, and India banned export of some domestically made drugs.

 

Eventually, other countries turned to Korea for drug supplies.

 

Reviewing the export volume by countries in May, the Korean drug export volumes to Germany, Spain, Italy and France have gone up rapidly.

 

The export volume to Germany reached 177.52 million dollars, showing 429 percent increase from last year same time.

 

The export volumes to Italy (867 percent), France (353 percent) and Spain (163 percent) have also soared.

 

Moreover, the export volume to the U.S.

 

has increased by 587 percent.

 

An official from the Korean company that urgently exported drugs to Luxembourg noted, “The use of essential drug in other countries centering Europe has skyrocketed amid COVID-19 pandemic.

 

European-made drug supplies are insufficient to meet their demand,” and “besides Luxembourg, the company is currently in talks with other countries like Sweden and Israel for their emergency request for pharmaceutical supply exports.”