Boycott Japan: Drug import rather increased in a year

From June last year to May this year, pharmaceutical import totaled UD 390 million with 2.1% surge

Pharmaceutical export to Japan skyrocketed by 56.1% in a year, balancing out surplus and deficit better

During a year of the Koreans boycotting against Japanese-made products, the total imported Japanese pharmaceutical sales have increased even more.

 

But the trade balance has improved as the Korean-made pharmaceuticals exporting to Japan surged as well.

 

Daily Pharm analyzed Korea Customs Service today and found the Japanese-made pharmaceutical import volume has increased by 2.1 percent from the time before the boycott.

 

From the start of the boycott against Japanese product in June last year to May this year, the overall USD 390 million (approximately 469.6 billion won) of Japanese-made pharmaceuticals were imported in the year.

 

Compared to the year before (June 2018 to May 2019), the figure jumped 2.1 percent (approximately 459.9 billion won) from 382 million dollars.

 

The pharmaceutical import contrasts greatly against the overall Japanese product import volume plummeting by 11.8 percent from 51.54 billion dollars to 45.48 billion dollars.

 

However, the trade balance has apparently improved with a steep increase in Korean-made pharmaceutical export to Japan.

 

A year prior to the boycott, the export to Japan generated 193 million dollars, but during the year of boycott the figure leapt by 56.1 percent recording 310 million dollars.

 

Due to the boycott, the trade deficit with Japan was dropped by about 100 million dollars from 189 million dollars to 89 million dollars.

 

The change in pharmaceutical import and export with Japan from a year before (June 2018 to May 2019) and after (June 2019 to May 2020) the boycott against Japan.

 

The Japanese-made pharmaceutical import rose (left) slightly, whereas the overall Japanese product import plunged by over 10% (Unit: USD 1 million) Source: Korea Customs Service

The statistics show Korea has made trade surplus with Japan in January, April and May this year.

 

For last two years, the pharmaceutical trading with Japan has never marked a monthly trade surplus.

 

The pharmaceutical trade surplus with Japan generated 10 million dollars (exported 35 million dollars, imported 26 million dollars), 2 million dollars (exported 34 million dollars, imported 31 million dollars) and 3 million dollars (exported 24 million dollars and imported 21 million dollars) in January, April and May, respectively.

 

The changes in trade balance with Japan in last two years.

 

Korea made surplus in January, April and May this year (Unit: USD 1 million won) Source: Korea Customs Service

The rare trade surplus aside, the Koreans boycotting against Japanese products does not seem to have brought a dire impact on the pharmaceutical sector.

 

The monthly pharmaceutical import from Japan has been fluctuating from June to December last year, respectively marking 32 million dollars, 46 million dollars, 24 million dollars, 32 million dollars, 37 million dollars, 31 million dollars and 33 million dollars.

 

The impact of boycotting was insignificant in pharmaceutical import this year as Korea imported 26 million dollars, 38 million dollars, 38 million dollars, 31 million dollars, and 21 million dollars of Japanese-made pharmaceuticals in January to May, respectively.

 

Changes in Japanese pharmaceutical import from June 2018.

 

Since June 2019 when the boycott movement started, the import volume fluctuated noticeably (Unit: USD 1 million) Source: Korea Customs Service

The trend is also apparent in the outpatient prescription drug sales of top Japanese pharmaceutical companies in Korea until May.

 

A pharmaceutical market research firm UBIST found Astellas Korea, Daiichi Sankyo Korea, Eisai Korea, Takeda Pharmaceutical Korea, Santen Pharmaceutical Korea and Korea Otsuka Pharmaceutical have generated total of 663.9 million won from outpatient sales within a year (June 2019 to May 2020).

 

Compared to the outpatient drug sales performance in the year before (June 2018 to May 2019) at 662.7 million dollars, the figure only grew by 0.2 percent.

 

Basically, the boycott has not affected the prescription drug sales.

 

The change in prescription sales of Japanese pharmaceutical company product from a year before (June 2018 to May 2019) and after (June 2019 to May 2020) the boycott against Japan.

 

Six companies did not demonstrate significant difference.

 

(Unit: KRW 100 million) Source: UBIST

The Koreans have revved up the boycott against Japanese products from June last year.

 

When the Japanese government has reportedly decided to restrict the export of key material used in semi-conductor manufacturing, a large number of Korean consumers responded back by boycotting against Japanese-made beer, automobile, and consumer products.

 

Regardless, the consumer boycott was unnoticeable in the pharmaceutical industry.

 

The industry experts claim the boycott would have unlikely to target prescription drugs as they are, unlike OTC drugs, directly related to the people’s health.

 

The majority of Japanese-made prescription drugs are original drugs with no alternative options used for highly severe diseases, which is why the switching drugs for the sake of boycotting would be unconvincing.

 

In fact, Korean pharmacist groups have assertively participated in the boycott, but healthcare professionals did not openly join the movement.