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Weight-loss drugs reshape markets and investor behavior

Published: 10 Apr. 2026, 00:02

Park Su-ryon

The author is the deputy editor of Content Division Three and the head of corporate research at the JoongAng Ilbo.

If artificial intelligence represents a technology that expands human intellect, weight-loss drugs offer something more immediate: control over the human body. While even advanced AI cannot easily alter physical habits, GLP-1–based treatments such as Wegovy, Zepbound and Mounjaro have opened a path to managing weight through medication. By mimicking a natural hormone released when people eat, these drugs suppress appetite, marking a significant achievement in pharmacology and bioengineering.

The photo shows prescription obesity treatment drugs Wegovy and Saxenda sold at a pharmacy in Jongno, Seoul. [YONHAP]

In Korea, these treatments are not covered by insurance, costing between 300,000 won and 650,000 won for a four-week course. Despite the expense, demand is rising sharply. Since the launch of injectable Wegovy in late 2024, the domestic obesity drug market has expanded to around 700 billion won within a year.

The appeal of these drugs lies in their efficiency relative to effort. Although treatment must continue for months, a once-weekly injection can produce visible weight loss. In Korea, where physical appearance often influences employment prospects, income and social opportunities, such drugs are increasingly viewed as a form of aspirational consumption. Alongside growth hormone treatments for adolescents, they have become part of middle-class spending aimed at enhancing appearance.

The economic ripple effects are becoming visible. Fitness centers and Pilates studios face concerns about declining demand, while global food and beverage companies are preparing for reduced consumption of snacks and alcohol. Many firms are expanding low-sugar and high-protein product lines in response. As with other technological innovations, these drugs are reshaping existing industries rather than simply adding to them.

The market could grow further as patents held by companies such as Eli Lilly and Novo Nordisk expire. Generic versions are expected to enter the market, potentially lowering costs and expanding access. If that happens, demand for both medical and cosmetic purposes could increase significantly.

In Korea, however, this anticipation has combined with investor fear of missing out, producing volatility in financial markets. Shares of Sam Chun Dang Pharm, a Kosdaq-listed company known for its single-use ophthalmic products, surged after it announced plans to develop an oral version of a GLP-1 drug. The company also disclosed export licensing agreements for its generic products in Japan, Europe and the United States.

Investor enthusiasm drove the stock price sharply higher. From around 200,000 won at the beginning of the year, the shares rose 381 percent over three months, reaching a closing price of 1,184,000 won on March 30. The rapid increase reflected expectations that demand for oral obesity treatments would expand globally.

Jeon In-seok, CEO of Sam Chun Dang Pharm, speaks during a press briefing at the company’s headquarters in Seocho District, Seoul, on April 6. The firm’s stock, which had surged sharply since the start of the year, plunged suddenly, raising various concerns. [JOINT PRESS CORPS]

However, such momentum proved fragile. Concerns emerged over the terms of a U.S. export agreement that appeared unusually favorable to the company. The inability to disclose the contract partner added to uncertainty. When the company’s chief executive announced plans to sell shares worth about 250 billion won, investor sentiment shifted quickly. The stock price fell sharply, highlighting the volatility often associated with Korea’s biotechnology sector.

The episode reflects broader challenges in regulating capital markets. President Lee Jae Myung has repeatedly warned that stock manipulation will face strict punishment. Yet distinguishing between illegal market activity and the inherent risks of pharmaceutical research remains difficult. Past investigations into Kosdaq-listed firms have rarely established clear managerial wrongdoing, even in cases involving suspected embezzlement or manipulation. At the same time, companies such as Celltrion have overcome early skepticism to become major players.

Regulators must therefore strike a balance. The Financial Supervisory Service’s special judicial police unit, now empowered to initiate investigations into stock manipulation without prosecutorial direction, faces a complex task. As new technologies reshape both industries and investor expectations, the ability to respond effectively will be closely watched.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.