Multinational pharmaceutical companies are typically headquartered in the U.S. or Europe and performing the "pharmaceutical industry" marketing globally. These multinational pharmaceutical companies have established Korean subsidiaries to conduct business in Korea, and there are approximately 50 of them. According to the Korean Research-based Pharma Industry Association (KRPIA), there are 48 registered member of such companies. Their mission is to supply innovative new drugs based on R&D and contribute to a better healthcare environment for humanity. The recent trend in multinational pharmaceutical companies is that foreign nationals are slowly disappearing as CEOs of Korean subsidiaries. Instead, Korean CEOs are emerging one after another. The emergence of Korean CEOs can be interpreted in several ways. First, it is a localization strategy that takes into account the characteristics of the Korean pharmaceutical market. As the pharmaceutical industry is increasingly regulated in Korea, smooth communication with government officials is crucial. Another reason is the increased understanding of the Korean corporate culture, which values not only communication but also school or regional connections. There is strong female presence among Korean CEOs. The high proportion of female executives and employees is due to the culture of multinational pharmaceutical companies that emphasize gender diversity. Horizontal human resource management and a transparent promotion evaluation system also play a role.
In fact, 15 multinational pharmaceutical companies of the 48 members of the KRPIA have female CEOs, bringing the percentage of female CEOs to over 30%. Most recently, Chinese global pharmaceutical company BeiGene Korea announced the launch of its Korean subsidiary, which also appointed a female executive, Ms. Yang Jihye, as its first CEO. BeiGene is a global pharmaceutical company founded in China in 2010 by American engineer and entrepreneur John V. Oyler and Chinese scientist Dr. Xiaodong Wang. Another notable trend is a new era of longevity for Korean CEOs. The main figures are Ms. Bae Kyungeun, CEO of Sanofi-Aventis Korea and Mr. Oh Dongwook, CEO of Pfizer Korea. Ms. Bae has been at the helm for 12 years and Mr. Oh for eight years. Given that the average tenure of a Korean CEO of a multinational pharmaceutical company is three to five years, professional management skills of Ms. Bae and Mr. Oh are highly regarded in the industry. In particular, Ms. Bae has been on an excellent run in the industry, serving as the general manager of three countries (Korea, New Zealand, and Australia) and chairman of the KRPIA. That's why her future is in the spotlight.
When she took over as chairman of KRPIA, she stated, "I will find ways to cooperate with domestic companies, such as strengthening open innovation, to create an innovation ecosystem for the domestic pharmaceutical and biotech industry." Mr. Oh Dongwook has also joined the ranks of 'longevity CEOs' as he enters his eighth year in office. The launch of a voluntary severance program following a halving of sales last year has shaken up the mood within Pfizer Korea, but it is expected to have little impact on Mr. Oh's tenure because poor sales were attributed to sluggish sales of COVID-19 products. "There is currently no set term for Mr. Oh, and no decision has been made regarding his future move," said Pfizer Korea about his tenure. Korean CEOs have been taking the helm of multinational pharmaceutical companies one after another based on their rich experience and leadership in domestic and international pharmaceutical companies. It is expected that they perform well as 'Korean CEOs' not only in the Korean market but also in the global market.
[WIKI KOREA=Cho Pil Hyun, Staff Reporter]
chop23@wikileaks-kr.org
