AI Innovations in the Biotechnology Industry and Growth Drivers in the Korean Market
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Paradigm Shift in the Biotech Industry Driven by AI-Based Drug Development
The biotechnology industry is experiencing an unprecedented wave of change in 2026 with the full-scale adoption of artificial intelligence technology. The global biopharmaceutical market size is projected to grow by 8.5%, from $483 billion in 2025 to $524 billion in 2026, with the AI-based drug development sector leading this growth at an annual rate of 35.2%. Notably, the traditional drug development process, which used to take an average of 10-15 years, is being reduced to 7-10 years with AI integration, and development costs are being cut by over 30%, from $2.6 billion to $1.8 billion.
Korea’s biotech ecosystem is demonstrating unique competitiveness at the forefront of these global trends. Samsung Biologics, headquartered in Seongnam, Gyeonggi Province, announced a 23.4% year-on-year revenue growth, reaching 1.24 trillion won in Q4 2025. This growth is attributed to the increasing demand for biopharmaceutical contract manufacturing (CMO) from global big pharma and the introduction of AI-based process optimization technologies. The company plans to fully operate its fourth plant in the first half of 2026, expanding its total production capacity to 364,000L, the largest in the world for biopharmaceutical production.
Celltrion, located in Songdo, Incheon, is also solidifying its leading position in the biosimilar market. The company achieved 3.12 trillion won in consolidated revenue in 2025, with overseas sales accounting for 68.7%, showcasing its global competitiveness. Notably, Celltrion has applied AI-based molecular design technology to its next-generation biosimilar pipeline, reducing development time from the traditional 5-7 years to 3-4 years. This technological innovation has received positive evaluations in the U.S. FDA approval process, and the adalimumab biosimilar ‘CT-P17’, scheduled for release in the second half of 2026, plans to enter the market at a price 40% lower than the original.
The Rise of Precision Medicine and Personalized Therapies
Another prominent trend in the biotechnology industry is the rapid advancement of the precision medicine field. The global precision medicine market is expected to grow by 20.3%, from $118 billion in 2025 to $142 billion in 2026, driven by advancements in genomics technology and improvements in AI-based data analysis capabilities. Particularly, the cost of next-generation sequencing (NGS) has plummeted from $3 billion during the 2003 Human Genome Project to below $1,000 today, making the development of personalized therapies a reality.
Korean biotech companies are also showcasing innovative approaches in this field. SK Biopharm, headquartered in Pangyo, Gyeonggi Province, unveiled its AI-based precision medicine platform ‘SKL-PSI’ in Q4 2025. This platform analyzes patients’ genetic information and clinical data to propose optimal treatment methods, with initial clinical trials showing a 34% improvement in treatment efficacy compared to existing standard therapies. The company plans to initiate global Phase 3 clinical trials for its Alzheimer’s treatment ‘SKL-AD01′ in 2026, marking the first case of an Asian company developing a neurodegenerative disease treatment using AI-based precision medicine technology.
Korean companies’ technological prowess is also gaining attention in competition with global pharmaceutical companies. Johnson & Johnson, headquartered in New Jersey, USA, signed a $1 billion strategic partnership with Korean biotech startup Ilias Biologics at the end of 2025. This partnership acknowledges the innovation of Ilias Biologics’ antibody-drug conjugate (ADC) technology and AI-based target discovery platform ‘TESSA’. The TESSA platform significantly reduces the time required for cancer drug target discovery from six months to 2-3 weeks and improves the success rate from 5-10% to 25-30%.
Roche, headquartered in Basel, Switzerland, signed a ‘K-Bio Initiative’ agreement with the Korean government in January 2026, announcing plans to nurture Korea as the precision medicine hub of the Asia-Pacific region. Under this agreement, Roche will invest $1.5 billion in Korea over the next five years to establish a precision medicine R&D center and collaborate with Korean biotech companies to build a genome database specialized for Asians. This strategic move reflects the growing importance of developing therapies that incorporate the genetic characteristics of Asians in genome research, which has traditionally been Western-centric.
Technological advancements in precision medicine are also bringing innovation to the diagnostic field. The liquid biopsy market is projected to grow by 33.3%, from $5.4 billion in 2025 to $7.2 billion in 2026, as the commercialization of technology that can diagnose cancer early with a single drop of blood becomes more widespread. Korean biotech companies are showcasing unique technologies in this area, with Genecurix, headquartered in Gangnam, Seoul, announcing at the end of 2025 that its self-developed ‘GQ-LB100’ platform can diagnose 15 types of cancer with 99.2% accuracy. This innovative technology is evaluated as reducing patient burden by over 90% compared to traditional tissue biopsies while providing higher accuracy.
The influence of precision medicine is also evident in therapeutic development. The immuno-oncology market is expected to grow by 18.3%, from $142 billion in 2025 to $168 billion in 2026, with biomarker-based personalized immunotherapies projected to account for 42% of the total market. Pfizer, headquartered in New York, USA, announced remarkable results in Q4 2025, achieving a complete remission rate of 87% in clinical trials of CAR-T cell therapy for Korean patients. This is a significant improvement compared to the complete remission rate of 65% in clinical trials for Western patients, attributed to the success of personalized CAR-T cell design technology that reflects the genetic characteristics of Koreans.
Investment trends in the biotechnology industry are also being restructured around precision medicine. The total global biotech venture investment reached $28.5 billion in 2025, with precision medicine-related investments accounting for 38.7%, or $11 billion. In Korea, biotech venture investment increased by 45.2% year-on-year to 2.84 trillion won in 2025, with over 60% focused on AI-based drug development and precision medicine. Notably, interest from foreign investors in Korean biotech companies is surging, with the proportion of foreign investment rising to 32.1% of the total in 2025, compared to 18.7% the previous year.
Changes in the regulatory environment also have a significant impact on the development of the biotechnology industry. The Korean Ministry of Food and Drug Safety announced ‘AI-Based Drug Development Guidelines’ in January 2026, clarifying approval standards for drug development processes utilizing AI technology. This is the world’s first comprehensive regulatory framework for AI drug development and is expected to positively impact both the entry of global biotech companies into Korea and the overseas expansion of Korean companies. The U.S. FDA also released a draft of similar guidelines at the end of 2025, with plans to finalize them in the first half of 2026, accelerating global standardization.
Another key factor that will determine the future of the biotechnology industry is the utilization and security of data. As the use of personal genetic information and medical data expands, concerns about data security and privacy protection are also increasing. In response, the blockchain-based medical data management solution market is expected to grow by 60%, from $1.5 billion in 2025 to $2.4 billion in 2026. Medibloc, a leading company in this field, has established partnerships with 150 medical institutions worldwide by the end of 2025, securely managing data for 3 million patients. The establishment of such data infrastructure is becoming a core foundation for precision medicine and AI-based drug development, playing a crucial role in enhancing the competitiveness of the biotechnology industry as a whole.
Amid these waves of change, the biotechnology industry is expected to enter a new growth trajectory starting in 2026. As AI technology matures, precision medicine becomes commercialized, and the global regulatory environment is streamlined, the pace of innovation across the industry is expected to accelerate further. Particularly, as Korean biotech companies secure differentiated competitiveness in the global market, Korea is likely to emerge as the Asian biotech hub over the next five years. Investors and industry stakeholders should closely monitor these structural changes and develop portfolio strategies from a long-term perspective.
*This analysis is based on publicly available market information and industry trends, and additional due diligence and expert consultation are recommended for investment decisions.*
