South Korea Boosts Support for Biopharma, Autos Amid U.S. Tariff Threat

South Korea’s government pledged stronger support for key export industries, including biopharmaceuticals and automobiles, as sweeping U.S. tariffs under President Donald Trump loom. Acting Finance Minister Kim Beom-seok said Seoul would prepare measures for item-specific duties, particularly on pharmaceuticals and semiconductors, and expand support for reshoring or “U-turn” investments.

The U.S. has imposed 25% tariffs on various South Korean products, prompting Seoul to roll out support packages for affected sectors such as autos, chips, and small exporters. The government plans to introduce new aid programs for the biopharma industry once the U.S. finalizes tariff details. Trump’s recent executive order aims to fast-track pharmaceutical plant approvals and promote domestic drug manufacturing, increasing pressure on foreign suppliers.

South Korea exported $9.59 billion worth of pharmaceutical products in 2024, 16% of which went to the U.S., its largest market. Celltrion Chairman Seo Jung-jin noted the company is delaying decisions on U.S. contract manufacturing due to high local costs, though he expects minimal impact thanks to Celltrion’s price competitiveness. The U.S. accounts for nearly 30% of the firm’s revenue.

Meanwhile, the U.S. FDA is conducting a May 19–27 inspection of Samsung Biologics’ Incheon plant, although it's unclear if it’s linked to new U.S. policy changes. Samsung Biologics shares jumped over 5% in early Wednesday trade, while Celltrion rose 0.5%, helping lift the KOSPI index by 1.1%.

The government has already mobilized 28.6 trillion won ($20.6 billion) in support measures and is pushing to negotiate tariff exemptions with Washington by the July 8 deadline. Trade Minister Ahn Duk-geun said talks are ongoing but warned progress may be delayed due to South Korea’s June 3 snap presidential election.