Samjong KPMG, Korea Pharma Bio Association share accounting and tax strategies for biotech sector

Business structures diversifying through technology transfers, overseas expansion

Accounting treatment for R&D, licensing grows in importance

Samjong KPMG and the Korea Pharmaceutical and Bio-Pharma Manufacturers Association jointly held the "2026 Pharma-Bio Accounting Issues and Response Strategy Seminar" at the association's main auditorium on Wednesday, the two organizations announced Thursday.

The seminar was organized to help pharmaceutical and biotech companies get ahead of accounting and tax risks as their business structures grow more complex through expanded R&D investment, technology transfers and overseas expansion. Sessions covered a broad range of pressing issues, including revised accounting standards, AI adoption, the global minimum tax and key regulatory rulings and court precedents.

The first session featured presentations by Samjong KPMG Executive Director Park Sang-hoon and Managing Director Noh Young-il, focusing on recent changes to accounting standards, major market trends in the pharma-biotech industry and the adoption and use of AI.

A segment on key accounting issues and updated standards explained the impact of recently revised or forthcoming accounting rules on financial reporting and accounting practices at pharma-biotech companies. It particularly highlighted key judgment considerations in accounting for transactions common to the sector, including R&D, technology transfers and licensing arrangements.

According to the Korea Pharmaceutical and Bio-Pharma Manufacturers Association, domestic pharma and biotech companies completed 13 technology transfer deals in the first three quarters of 2026, with the 11 deals that disclosed their value totaling more than 21 trillion won ($15.5 billion).

A segment on recent market trends, including the certification system for innovative pharmaceutical companies, examined shifts in major policy and market conditions. Another segment on AI adoption in the pharma-biotech and accounting industries explored how artificial intelligence — including generative AI — is set to transform both sectors.

The second session featured presentations by Samjong KPMG Executive Directors Choi Eun-young and Kang Sung-won, focusing on the global minimum tax and key tax issues facing the pharma-biotech industry.

A segment on understanding the global minimum tax and filing obligations explained its basic structure and scope of application, stressing the need for companies with overseas subsidiaries and operations to assess the tax implications of their global business structures in advance and put proper filing systems in place. A separate segment analyzed recent regulatory rulings and court precedents in the pharma-biotech sector, examining key tax disputes reflecting industry-specific characteristics — including those involving R&D, technology transfers and pharmaceutical transactions.

"The pharma-biotech industry requires a wide range of accounting and tax judgments and reviews due to its defining characteristics — large-scale R&D investment, technology transfers and global business expansion," said Park Sang-hoon, head of Samjong KPMG's pharma-biotech sector. "Beyond changes to accounting standards and tax rules, factors such as innovative pharmaceutical company certification and technological innovation like AI are now shaping the accounting and financial work environment, making it essential to take a comprehensive look at the direction of these key changes," he added.

Meanwhile, Samjong KPMG posted sales of 905.6 billion won for fiscal year 2025 (April 2025 to March 2026), up 3.4 percent from the previous year. Operating profit swung to 900 million won from an operating loss of 300 million won a year earlier.

park.jiyeong@heraldcorp.com