The government will build a "relay support system for new drug development" that runs from candidate discovery to clinical entry, technology transfer, and entry into global markets, to foster pharmaceutical and biotech ventures. The plan bundles not only research and development (R&D) funding but also policy funds, guarantees, medical data, and global collaboration platforms.
The Ministry of Health and Welfare and the Ministry of SMEs and Startups held a joint policy meeting on the 24th at the Korea Pharmaceutical and Bio-Pharma Manufacturers Association (KPBMA) in Seocho-gu, Seoul, and announced a "full-cycle collaboration plan to foster pharmaceutical and biotech ventures." The goal is to identify and focus support on corporations capable of creating blockbuster drugs and achieve 3 trillion won in pharmaceutical and biotech technology exports by 2030.
The government judged that although Korea's drug pipelines have expanded to 3,233, ranking third in the world after the United States and China, the "valley of death" where funding dries up at the clinical stage remains the biggest bottleneck to industry growth. Accordingly, it redesigned a full-cycle support structure, from early startup to global technology transfer, as an inter-ministerial collaboration.
This collaboration plan will be pursued around the so-called "4UP strategy": expanding innovation capital supply, broadening open innovation, advancing the industrial ecosystem, and designing field-centered policies.
◇ Up to 3 billion won in R&D for corporations selected for "Scale-up TIPS"
First, based on "Scale-up TIPS," the two ministries will jointly identify promising pharmaceutical and biotech ventures and provide package support for research and development and commercialization funds.
Selected corporations will receive 2 billion to 3 billion won in private investment-linked R&D funds, with additional linkage to the Ministry of Health and Welfare's global expansion package, open labs and other research infrastructure, and the Ministry of SMEs and Startups (MSS) export voucher program. Global certification and testing, regulatory responses, and marketing expense will also be included in the support.
Corporations that carried out preclinical projects will receive favorable evaluation for follow-on support of up to 4.55 billion won when applying for Phase 1 clinical projects under the Korea Drug Development Fund (KDDF). Projects that completed Ministry of Health and Welfare R&D will also receive up to 150 million won in consulting for commercialization strategy, patents, and approvals through the MSS technology commercialization package.
The government described this as an "R&BD relay support system" that runs from candidate discovery to clinical entry.
◇ Policy funds to follow on sequentially as well… up to 20 billion won in guarantees for pre-unicorns
Policy funds will also be linked step by step.
Previously, the early bio investment fund and the K-Bio and Vaccine Fund were operated separately, but going forward, the linkage system will be expanded so that a follow-on investment structure continues by stage—candidate discovery, preclinical, clinical, and commercialization. Funds involving Japanese CRO participation and consortia of domestic pharmaceutical companies will also be used.
Technology guarantees will also be strengthened.
The government decided to grant extra points in the pre-unicorn guarantee evaluation for jointly selected corporations and expand guarantee support up to 20 billion won. Through the newly established "R&D commercialization project guarantee" this year, up to 3 billion won in working capital and up to 10 billion won including facility funds will be supported under a separate cap.
For corporations whose technological prowess is recognized by the Korea Health Industry Development Institute, up to 3 billion won in "excellent IP value-plus guarantees" will also be linked.
◇ Support for all stages of big pharma collaboration… linkage to entry into the Boston and Shonan hubs
Support for open innovation to expand global technology transfer will also be broadened step by step.
The government established a "global open innovation activation program" that supports the entire process from the exploration stage of collaboration with global pharmaceutical companies to after the conclusion of technology transaction contracts.
Before signing a confidential disclosure agreement (CDA), 200 million won will be provided for IP analysis and commercialization consulting; after the agreement, 400 million won for efficacy and safety testing expense; and after the technology transaction contract, up to 800 million won for sample contract manufacturing costs.
MSS programs will also be linked, including export-oriented R&D (1 billion won over two years) and joint R&D with global pharmaceutical companies (2.5 billion won over five years).
Selected corporations will also receive preferential treatment for moving into overseas hubs such as CIC in Boston, United States, and Shonan iPark in Japan.
◇ New AI drug development collaboration… "Use medical data from 43 hospitals"
Domestic collaboration-type R&D will also be expanded.
The government plans to select 20 collaboration projects per year between AI ventures and pharmaceutical ventures, support up to 1 billion won per project for two years, and link them to use clinical and omics data from 43 medical data-centered hospitals nationwide.
In addition, 10 joint research and development projects between pharmaceutical ventures and domestic pharmaceutical companies will be selected, with up to 3 billion won per project supported over three years.
The certification standards for innovative pharmaceutical corporations will also be revamped so that collaboration performance between pharmaceutical companies and ventures is reflected in the certification evaluation.
◇ Joint use of research equipment… connecting the Songdo and Osong clusters
Research and development infrastructure will also be shifted to a joint-use system.
The government will build a system to reserve and use major bio-cluster research equipment in Songdo and Osong online, and will establish a technology service cooperation framework linked with advanced medical complex zones.
It also plans to build a virtual platform for sharing facilities and equipment among bio clusters nationwide by 2028.
In addition, a specialized fact-finding survey of pharmaceutical and biotech ventures, including startup types, investment attraction status, and technology transfer performance, will be conducted annually to improve policy precision.
◇ New "running together" program for AI-based joint R&D and technology commercialization
New programs will also be pursued to reduce gaps in early corporate support.
The government plans to establish a new AI-based joint research and development program involving pharmaceutical ventures and pharmaceutical companies to build a collaboration structure that continues from candidate derivation to the nonclinical stage.
It also decided to provide integrated support through the "K-Bio technology commercialization running together" program, covering technology diagnostics, development of global partnering strategies, investment attraction support, and customized research infrastructure services such as antibody discovery and process development.
Through this collaboration plan, the government expects to build an industry growth ladder in which investment, research and development, commercialization, and global expansion are organically connected.
Jung Eun-kyeong, Minister of Health and Welfare, said, "Pharmaceutical and biotech ventures are key players for a leap to a globally leading economy," adding, "We will build a growth ladder that runs from research and development to global expansion."
Han Seong-sook, Minister of the Ministry of SMEs and Startups, said, "We will organically connect government support so that technology quickly leads to commercialization."