South Korea’s biotech industry is becoming an increasingly important source of drug candidates for U.S. and global pharmaceutical companies, with licensing activity accelerating in obesity, immunology and RNA-based medicines and potentially creating new opportunities for investors. Through Aug. 24, South Korean drugmakers and biotech companies had disclosed more than $11 billion in licensing agreements since January, putting the industry on pace to challenge last year’s record of about $15 billion.
The latest deal underscores the shift. Hanmi Pharmaceutical said Aug. 24 that it agreed to license its experimental obesity drug HM17321 to Genentech, a unit of Roche, in a transaction worth as much as $2.3 billion, including a $190 million upfront payment.
Hanmi called the agreement the largest licensing deal for a single drug candidate in the history of South Korea’s pharmaceutical industry. The upfront payment represents about 8% of the potential deal value, compared with roughly 5% that is more typical for such transactions, the company said.
For U.S. drugmakers, the growing deal flow offers access to a wider pool of Korean-developed assets while allowing smaller biotechnology companies to tap the capital, clinical-development expertise and global commercial networks of multinational partners.
HM17321 is in Phase 1 testing and is based on urocortin 2, or UCN2. The experimental treatment is being developed with the potential to promote weight loss while increasing muscle mass and improving exercise capacity and metabolic function.
The transaction illustrates how South Korea’s biotech sector is moving beyond early-stage research toward drug candidates that multinational pharmaceutical companies are willing to acquire or license at substantial valuations. Hanmi has been developing multiple obesity treatments through its H.O.P. research program, with HM17321 targeted for potential commercialization in 2031.
Hanmi also licensed another experimental medicine, sonefpeglutide, to Eli Lilly earlier this year in a deal worth as much as $1.19 billion, including a $75 million upfront payment. The drug is being studied for potential effects on intestinal growth, inflammation and protection of the intestinal lining.
Other South Korean biotech companies have expanded the flow of deals into drug-delivery technology, immune therapies and RNA medicines.
Alteogen signed a deal worth as much as $365 million involving ALT-B4, its recombinant human hyaluronidase technology for developing subcutaneous formulations of biologic drugs. The technology could help turn some medicines that require intravenous administration into treatments that can be delivered under the skin.
NeoImmuneTech recently agreed to transfer exclusive development and commercialization rights in the Americas and Europe for NT-I7 to U.S.-based Tolerance Bio. NeoImmuneTech will receive a 4% equity stake in Tolerance Bio upfront and could receive as much as $260 million based on clinical-development and sales milestones.
NT-I7 is an interleukin-7-based T-cell amplifier and one of NeoImmuneTech’s leading drug candidates.
Olix Pharmaceuticals also reached a deal with Chinese drugmaker Hansoh Pharmaceutical covering the development and commercialization of two small-interfering RNA, or siRNA, sequences. Olix will receive an upfront payment, though the companies didn’t disclose the financial terms.
The breadth of the transactions points to several areas where South Korea’s biotech industry is gaining traction, including obesity and metabolic disease, drug-delivery platforms, immune-cell therapies and RNA-based treatments.
For investors, the larger story is the growing role of licensing as a bridge between Korean drug discovery and global commercialization. Upfront payments and milestone-based deals can provide smaller companies with capital while shifting the cost and risk of late-stage development to larger pharmaceutical partners.
If the current pace continues through the rest of the year, South Korea’s pharmaceutical and biotech industry could surpass its 2025 record for overseas licensing revenue, strengthening its position as a pipeline source for global drugmakers.
