Big firms take 77% of Korean pharma profits

By Kim Dong-young Posted : October 10, 2026, 09:46 Updated : October 10, 2026, 09:46
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SEOUL, October 10 (AJP) - Eight large companies captured about 77 percent of operating profit at South Korea’s listed pharmaceutical and biotech firms in the first half, while smaller rivals sank deeper into the red, according to the Korea Biotechnology Industry Organization.

The eight posted a combined operating profit of 2.12 trillion won ($1.58 billion) in January to June, out of 2.76 trillion won for all 58 listed pharmaceutical firms, the industry body’s analysis of half-year reports showed.

It did not name the companies.

Operating margins at the large firms held steady at 39.9 percent, little changed from 40 percent a year earlier.

Mid-sized companies slipped to 9.5 percent from 10.2 percent, while small firms plunged to minus 27.6 percent from minus 10.3 percent.

The 22 small companies nearly tripled their combined operating loss to 129.3 billion won from 45.2 billion won. Their research and development spending jumped 28.5 percent, the fastest pace among the three groups.

Large firms’ profit rose 11.3 percent, as a 66.1 percent first-quarter surge outweighed a 17 percent second-quarter drop. Samsung Biologics alone booked 1.17 trillion won in first-half operating profit, according to its earnings release.

“Sales growth on a financial-statement basis has slowed from a year earlier, and profitability trends have diverged by sector,” said Kim Eun-hee, head of the industry statistics team at the association.

She said performance by company size needs close examination.

AJP Takeaways

- Eight large companies earned 76.9 percent of the 2.76 trillion won in operating profit that 58 listed South Korean pharmaceutical firms made in the first half of 2026, according to the Korea Biotechnology Industry Organization (KoreaBIO).

- The 22 small pharmaceutical firms in the KoreaBIO survey saw their combined operating loss widen to 129.3 billion won from 45.2 billion won, and their operating margin fell to minus 27.6 percent.

- KoreaBIO released the findings on Sept. 30, 2026, in its survey of 82 listed bio-healthcare companies. It did not disclose results for individual companies.

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