Seoul:The Ministry of SMEs and Startups (MSS) and the Ministry of Health and Welfare have announced a new initiative aimed at enhancing the global competitiveness of 200 pharmaceutical and biotech companies by 2030. This initiative, revealed at the National Policy Coordination Meeting on October 29, seeks to provide coordinated support for research, clinical development, commercialization, financing, and overseas expansion.
According to Ministry of SMES and Startups, the initiative will involve the joint identification of small and medium-sized enterprises (SMEs) and venture companies that possess strong technologies and growth potential. The support will extend through various stages of development, from identifying drug candidates and conducting preclinical studies to clinical trials and market entry.
The pharmaceutical and biotech market in Korea has seen significant growth, rising from KRW 23.2 trillion in 2020 to KRW 31.7 trillion in 2024. Despite this growth, the number of new biotech ventures has decreased from 581 in 2020 to 288 in 2023, indicating challenges in translating market expansion into startup activity. Substantial investment is required for new drug development, and early-stage biotech companies face funding difficulties.
The government is focusing on pharmaceuticals and biotechnology as one of seven priority sectors under its SEED initiative, planning approximately KRW 13 trillion in investment. This includes megafunds and the National Growth Fund to support the sector. The new plan builds on a joint support framework announced in March, addressing concerns raised by businesses.
The initiative will offer tailored support to 200 companies by 2030, selecting 50 companies annually. These will include those developing new medicines, working in medical devices and digital health, and specializing in biomaterials and production technologies. Each company will receive assistance from a dedicated growth adviser for an initial two-year phase, with successful ones receiving an additional three years of support.
Additionally, the ministries will leverage AI and other advanced technologies to reduce drug development timelines and costs, assisting companies to transition smoothly from research through clinical trials to commercialization. They will also fund new R and D in alternatives to animal testing and medical AI.
The plan emphasizes facilitating hospital and university researchers in turning their findings into businesses and commercial products. Startups will be connected with global pharmaceutical companies for technology validation, joint R and D, investment, and commercialization.
To support international expansion, the initiative will establish networks of global pharmaceutical companies, investors, and local experts to help businesses plan overseas clinical trials and prepare to enter new markets. International joint R and D projects will also be pursued.
Ministers Lee Soyoung and Jeong Eun-Kyeong highlighted the importance of combining expertise to support Korean companies with innovative technologies in succeeding internationally, focusing on clinical trials, regulatory approval, and commercialization. The ministries aim to provide a consistent path from promising research to global business growth, targeting the support of 200 companies by 2030.