Switzerland and South Korea may be separated by thousands of kilometres, but their economic relationship has never been closer. Bilateral trade reached nearly USD 8 billion in 2025, pharmaceutical flows are surging, and a growing web of R&D partnerships is linking two of the world's most innovation-intensive ecosystems. At the centre of this relationship sits the Swiss Business Hub Korea, the official trade and investment promotion body embedded within the Swiss Embassy in Seoul. Its Head, Andrea Clementi, explains what is driving the bilateral momentum — and what it means for life sciences, manufacturing, and strategic partnership in a shifting geopolitical landscape.
Could you introduce yourself and the core mission of the Swiss Business Hub Korea?
I am a career diplomat, currently serving as Head of the Swiss Business Hub Korea, the local office of Switzerland Global Enterprise, Switzerland’s official trade and investment promotion agency. The Hub, a team of four local senior specialists, is fully integrated into the Embassy of Switzerland in Seoul.
Our mission has two complementary dimensions. On the export side, we support – on a mandate-basis – Swiss and Liechtenstein companies, especially SMEs, seeking to enter or expand in the Korean market. This can include market information, partner searches, business development support, trade fair activities, as well as a realistic assessment of opportunities and challenges.
On the investment promotion side, we position Switzerland as a business, innovation and R&D location for Korean companies. In practical terms, we support Korean firms – especially in the sectors of biopharma and advanced automation – that see Switzerland as a business location and a base for European market access.
Being integrated into the Embassy gives us institutional credibility and a close understanding of Korea’s political and economic environment. Moreover, we are connected to Switzerland’s wider network of companies, cantons, universities, innovation parks and sectoral organizations. To summarize: our role is to create concrete value on both sides: helping Swiss companies succeed in Korea, helping Korean companies discover and choose Switzerland, thus strengthening the broader bilateral economic relationship.
How would you characterize the current health of the Swiss-Korean economic relationship?
I would describe the relationship as healthy and increasingly strategic. Currently, around 50 Korean companies are operating in Switzerland, a significant increase from approximately 10 companies in 2010. At the same time, nearly 120 Swiss companies are active in Korea, contributing to roughly 12’000 jobs, most of them highly qualified. Moreover, we observe a strong increase in tourism in both directions, fueled by appeal of K-culture, the good image of Switzerland in Korea and a new direct flight operated by Swiss, introduced in 2024.
In 2025, the two countries traded almost USD 8 billion worth of goods, with pharmaceutical products accounting for the largest share. Other major categories are machinery, chemicals, precision instruments, watches and jewelry. Despite some occasional fluctuations, these elements are constant, and the trade volume is growing over the years. This is also related to the EFTA-Korea Free Trade Agreement, which entered into force 20 years ago in 2006 and played a major role in sustaining the positive trend.
Beyond the figures, what matters most is the quality of the relationship. Switzerland brings strengths in areas such as life sciences, high-value manufacturing, and research, while Korea contributes industrial scale, speed, and digital capabilities. These strengths complement each other extremely well.
The relationship is also becoming more balanced. Korea is no longer simply an export market for Swiss companies; it is also a partner in innovation, manufacturing, clinical development, digital health and global value chains. For this reason, I see the bilateral economic relationship as increasingly strategic.
What specific improvements are you currently aiming for to facilitate?
The first area is related to practical market access. For Swiss SMEs, Korea is attractive but complex. Certification requirements, sector-specific regulations, language barriers and local business practices can all be challenging. Our role is not to remove these challenges magically, but to help companies understand them early, identify the right entry points, and avoid costly misunderstandings.
At the same time, Switzerland itself can be complex to navigate for Korean companies, given its federal structure and its focus on attractive framework conditions rather than a classic sector-specific industrial policy. This is where we can help Korean companies: by guiding them to the right entry points and connecting them with the relevant cantons, clusters, innovation parks and partners.
The third area relates to innovation connectivity. Switzerland and Korea both invest heavily in science, technology, and high-value industries, but successful cooperation does not happen automatically. It requires platforms, matchmaking, trust-building, and consistent follow-up. This is particularly true in sectors such as life sciences and advanced manufacturing.
Finally, the modernization of the framework conditions. The EFTA-Korea Free Trade Agreement has been a strong foundation since 2006, but the global economy has changed considerably. Digital trade, sustainability, services, regulatory cooperation and non-tariff barriers have become much more important. A future-oriented framework should reflect these new realities.
So, when we speak about “facilitating,” we mean both policy-level improvements and very practical support: better information, better networks, better partner identification and better alignment between Swiss capabilities and Korean needs.
Switzerland recently became the #1 export destination for Korean biopharmaceuticals, with volumes reaching $340 million in Q1 2026 – a 70% increase year-on-year. What is driving this trend?
The reported figure is very significant, but I would interpret it carefully. A sharp quarterly increase in pharmaceutical trade can be influenced by individual high-value shipments, exchange-rate fluctuations, inventory cycles or intra-company flows.
That said, the trend also reflects deeper structural factors. Korea has become a global player in biopharmaceuticals, especially in biosimilars, CMO/CDMO services and large-scale biomanufacturing. Korean companies are no longer perceived as fast followers, but increasingly as reliable partners combining scale, quality and speed. The scientific standards and R&D capabilities of Korean biotech companies have reached a very high level. Moreover, Seoul’s high concentration of major university hospitals and standardized data management systems are key factors in gaining the trust of global pharmaceutical companies.
Switzerland, for its part, is widely recognized as one of the world’s leading life science hubs, combining major global players with a dense ecosystem of small and medium-sized companies, startups, specialized suppliers and world-class academic institutions. The country invests heavily in research and development (around 3.4% of GDP) – while research-based pharmaceutical companies alone spend roughly USD 10 billion per year in R&D in Switzerland. The strength of the ecosystem is also reflected in its biotech sector, with more than 400 companies active in 2025. This makes Switzerland a natural destination for high-value biopharmaceutical flows.
The increase also reflects the complementarity between the two ecosystems. Korean companies are looking for global market access, advanced research networks and credibility in Europe. Switzerland offers precisely this combination: life science expertise, international connectivity, legal stability and proximity to leading pharma and biotech actors.
We see an increasing trend of Swiss-Korean R&D collaborations; can you share some of the most prominent examples?
There are indeed several examples that show the relationship is moving from general dialogue to more concrete cooperation. One important platform is the Swiss-Korean Life Science Initiative, a public-private initiative created to foster interdisciplinary collaboration between medical doctors, scientists, engineers, startups and industry. Over the past 13 years, it has organized the annual Swiss – Korean Life Science Symposium, helping to build strong networks within the life sciences sector.
Another example is the partnership between Basel Area Business & Innovation and the Korea Pharmaceutical and Bio-Pharma Manufacturers Association. This created a bridge for Korean biopharmaceutical companies interested in Switzerland and European markets.
A further milestone was the memorandum of understanding between Korea Biotechnology Industry Organization and Switzerland Innovation Park West EPFL. This agreement aims to strengthen industrial collaboration, technology exchange, joint R&D projects and talent exchange in biotech.
Most recently, Basel Area Business & Innovation announced a collaboration with Roche Korea, the Korea Health Industry Development Institute and the Korea Technology Finance Corporation. This will support selected Korean biotech and pharmaceutical companies as they expand into global markets, including by connecting them with Basel’s life sciences ecosystem.
Moreover, in March 2026 Roche also signed a memorandum of understanding with the Ministry of Health and Welfare to invest almost USD 480 million in Korea over the next five years. Under the agreement, Roche will conduct global clinical trials in Korea for common and intractable diseases as well as advanced biopharmaceuticals. The company also plans to train R&D professionals and identify and support promising Korean biohealth companies through open innovation.
Given current geopolitical tensions and the China+1 strategy, how does Korea position itself as a stable alternative for European companies?
From a business perspective, Korea has many strengths that make it attractive in a broader de-risking strategy. It offers world-class infrastructure, advanced manufacturing, strong industrial know-how, a highly educated workforce and deep expertise in sectors such as semiconductors, batteries, biopharma, shipbuilding, robotics, digital technologies and advanced materials.
For European companies, Korea can serve not only as a sales market, but also as a production, R&D, validation or partnership location. This is particularly relevant for Swiss companies, which often compete on quality, specialization and technology rather than price.
Another important point is that many Korean companies are global players. Strategic decisions on technology, procurement and partnerships are often taken in Seoul, but their impact may extend to production lines and markets in Southeast Asia, Europe, the United States and beyond.
In this sense, Korea should not be seen merely as a “China+1” location, but as a strategic Asian partner in its own right: stable, technologically advanced and deeply embedded in global value chains.
When a European company looks at Asia for the first time, what cultural nuances should they consider succeeding in Korea?
Korea is a relationship-driven market. A strong product is necessary, but it is rarely sufficient. Companies need to invest time in building trust, understanding the local ecosystem and identifying the right partner. A distributor, agent, hospital, corporate client or research partner can make a decisive difference.
Another important nuance is speed. Korean counterparts often move very quickly, expect rapid follow-up and appreciate responsiveness. At the same time, building trust may take longer than expected. This combination can be surprising for European companies: the pace of interaction is fast, but the development of a reliable relationship still requires patience and presence.
Hierarchy and decision-making also matter. It is important to understand who is involved in the process, who influences the decision and how communication should be structured. Directness can be appreciated, but it should be combined with respect, preparation and sensitivity to the context.
Language is another practical factor. Many Korean professionals speak excellent English, especially in technology and life sciences, but key details can still be lost if documents, technical explanations or negotiations are not adapted properly. Investing in clear communication is essential.
Finally, companies should not assume that a European success story can simply be copied into Korea. The market is sophisticated, competitive and demanding. Korean customers often expect high quality, local responsiveness and long-term commitment. Our advice to European companies is therefore simple: come well prepared, listen carefully, adapt where necessary, and treat Korea not as a quick opportunity, but as a strategic market.
What key events or trade missions is the SBH focusing on for the remainder of 2026?
For 2026 as a whole, I would highlight several milestones. In May, alongside Swiss Biotech Day in Basel, the Swiss Business Hub Korea teamed up with Korea Trade-Investment Promotion Agency KOTRA and other partners to bring 14 Korean pharmaceutical and biotech companies to Switzerland, marking the largest Korean presence in the event’s history.
In April, a delegation of Swiss wine producers visited Korea for the first time, meeting potential importers and buyers through a three-day programme that included tasting events, exchanges with industry representatives and a seminar dedicated to customs and regulatory aspects.
Also in April, a strong Swiss presence participated in SIMTOS, South Korea’s largest trade exhibition for machine tools, automation and smart-factory solutions. The Hub organized related activities in cooperation with Swissmem, the Swiss mechanical and electrical engineering industries association.
Another major milestone will be Swiss-Korean Innovation Week 2026 in June. Under the theme “Unlocking Space – Ideas in Orbit”, the Swiss Business Hub will organize a seminar highlighting Swiss companies active in the space economy and related technologies. The event will create a practical opportunity for Swiss and Korean industry players to connect and explore shared interests in this growing sector. Additional activities are planned the following week in connection with the International Space Summit in Daejeon.
The hub is also organizing a Korean industry delegation for Swiss Robotics Day in Zurich this November. The event will offer a platform to discuss collaborations and explore the Swiss robotics and automation ecosystem.
Finally, we are already preparing for the next edition of KORMARINE in Busan, the leading maritime and shipbuilding exhibition in Korea. The event — including a Swiss pavilion and a Swiss Marine Night — represents a particularly relevant platform for Swiss companies, given Korea’s global role in shipbuilding and the strong contribution of Swiss technologies to the sector.
