[NEWSMP] Experts remain optimistic about the business outlook for Korea's biohealth industry, although their expectations have gradually softened.
At the same time, concerns persist over declining new investment and widening disparities among companies, raising questions about the industry's future trajectory.
According to the “Expert Survey on Industrial Business Conditions (October 2026 Conditions and November Outlook)” report released by the Korea Institute for Industrial Economics and Trade (KIET) on October 25, the biohealth industry's Professional Survey Index (PSI) remained at or above 100 across key indicators, including exports, domestic demand, business conditions, and production, for both the October assessment and the November outlook.
The PSI is a quantitative indicator based on monthly surveys of a panel of experts comprising professionals from domestic financial institutions, associations, organizations, and research institutes. It measures their assessments of business conditions across major manufacturing industries.
Survey respondents choose among three options: improvement (expansion) compared with the previous month, no change, or deterioration (contraction). The average of the responses is then converted into an index ranging from 0 to 200.
With 100 indicating no change from the previous month, readings closer to 200 indicate that assessments of improvement increasingly dominate, while readings closer to 0 suggest a growing predominance of assessments of a slowdown.
According to the report, PSI readings for business conditions, domestic demand, exports, and production remained at or above 100 in both the October assessment and the November outlook. However, overall expectations have moderated.
In the October assessment, the business conditions PSI stood at 100, remaining at the neutral level for the second consecutive month. Meanwhile, the domestic demand PSI rose from 114 to 119, marking its third consecutive monthly increase since July.
The export PSI remained unchanged from the previous month at 119, while the production PSI declined from 124 to 110.
The investment PSI, which had been steadily rising and reached 124 in the previous month, fell sharply to 95. The profitability PSI also remained at 95 for the second consecutive month, staying below the neutral threshold of 100.
In the November outlook, the business conditions PSI fell to 114 from the previous month's reading, but positive assessments continued to outweigh negative ones.
The domestic demand PSI rose from 114 to 119, marking its fourth consecutive monthly increase. In contrast, the export PSI, which had climbed to 143 in September, declined for the second consecutive month to 119.
The production PSI also fell to 114 from the previous month's level. Meanwhile, the investment PSI, which had risen to 143 in September alongside exports, declined for the second consecutive month to 100, indicating a balance between positive and negative assessments.
The profitability PSI, which had risen to 119 in September, also declined for the second consecutive month to 90.
According to the report, experts identified several positive factors supporting the industry's outlook, including growing demand for generic drugs, a recovery in investment activity, diversification of pharmaceutical products driven by population aging, and expectations of improved export performance.
However, some experts pointed out that business conditions on the ground have yet to improve despite a recovery in investment activity.
In particular, while follow-on investments in existing projects have continued, a lack of new investment has hindered progress in clinical development. This, in turn, has limited opportunities for out-licensing deals and the generation of additional clinical data.
Experts also cited persistent weakness across the industry and subdued investment sentiment amid high interest rates and other factors as reasons behind their negative assessments.
