Latvia and South Korea strengthen ties in biomedical and pharmaceutical industries

In 2023, representatives from eight Latvian companies and the Latvian Minister of Economics participated in Bioplus-Interphex, a prominent biopharmaceutical exhibition in South Korea. This marked a significant step in fostering closer ties between the two countries in the biomedical, medical technology, and pharmaceutical sectors. These relationships are further reinforced through memoranda of understanding (MOU), collaborative events, and successful business partnerships.

Expanding International Cooperation

Several South Korean companies, including Dong-A ST, Kolmar Korea, and Prestige Bio, have already chosen Latvia for conducting clinical trials. Their involvement underscores Latvia’s growing reputation as an attractive destination for pharmaceutical research and innovation. These firms join a host of international companies that are leveraging Latvia’s robust infrastructure, skilled workforce, and industry expertise, which dates back to the 19th century.

Latvia has also welcomed significant investments. For example, China's MGI established a research and manufacturing facility in the country, while pharmaceutical giant Roche expanded its operations in Riga in 2023 by adding a global business services center.

Strengthening Ties through Strategic Agreements

During a Latvian delegation's official visit to South Korea in 2023, key milestones were achieved. The Latvian Association of the Chemical and Pharmaceutical Industry (LAKIFA) and KoreaBio signed an MOU to enhance collaboration in the biomedical sector. The Investment and Development Agency of Latvia (LIAA) initiated discussions with Eugene Investment & Securities about establishing a new investment fund.

“This agreement is an important step towards building a bio industry ecosystem between Korea and Latvia,” remarked Koh Kyung-mo, CEO of Eugene Investment & Securities. “We will support the growth of the bio industry in both countries and actively contribute to global innovation in this field.”

Recent Developments

The partnership between the two nations has continued to thrive. Latvian pharmaceutical manufacturer Grindeks has opened a representative office in South Korea, while Pauls Stradiņš Clinical University Hospital is exploring research collaborations and the establishment of an innovation center with Seoul National University.

In November 2024, Latvian President Edgars Rinkēvičs led an official visit to South Korea, further strengthening bilateral ties. The delegation visited leading South Korean companies such as CJ Bio, PharmCadd, and Seegene. During this visit, Latvia’s AE Risinājumi and Korea’s Plagen signed an MOU to encourage further collaboration.

Trade between Latvia and South Korea has grown fivefold in the past decade, reaching €130 million in 2023. As noted by Sohn Kyung-sik, Chairman of the Korea Enterprises Federation, “The two countries have world-class capabilities in biotechnology and defense, and the potential for cooperation is limitless.”

Latvia’s Pharmaceutical and Biomedical Strengths

Latvia’s chemical and pharmaceutical sectors are vital to its economy, ranking fourth among all manufacturing industries in exports and fifth in turnover. In 2023, pharmaceutical exports comprised 27% of total industry exports, with a turnover of €240 million. Over 500 companies, including Grindeks, Olainfarm, and Silvanols, contribute to these impressive figures.

Latvia is also a hub for education and research, attracting medical students from countries such as Germany, Sweden, and Uzbekistan. Renowned research institutions, such as the Institute of Organic Synthesis (OSI) and the Latvian Biomedical Research and Study Center (BMC), are pivotal in advancing global science. Together, these institutions lead the BioMedPharm consortium, which focuses on drug development, vaccine research, precision medicine, and biomarker discovery.

Opportunities and Future Prospects

The partnership between Latvia and South Korea highlights the transformative potential of international collaboration in driving innovation and economic growth. Events such as Latvia’s annual Precision Medicine Network Forum serve as crucial platforms for industry stakeholders to connect and explore opportunities. The 2024 forum welcomed 600 participants from 31 countries, and the upcoming 2025 edition, scheduled for October 9-10 in Riga, promises even greater insights and networking potential.

With trade between the two nations increasing fivefold over the last decade, reaching €130 million in 2023, the foundations are set for continued success. Both countries possess world-class capabilities—Latvia in biotechnology and South Korea in medical technology—providing an excellent basis for future cooperation. By aligning their strengths and fostering mutual innovation, Latvia and South Korea are well-positioned to achieve groundbreaking advancements in the biomedical and pharmaceutical industries.

Source: LIAA