The Korean government said it would actively support the bio-health industry’s growth, as the sector is predicted to attract 10 trillion won ($9 billion) investment from the private sector by 2023.
The government announced its blueprint for accelerating the bio-health industry’s growth and fostering technology capabilities at the Yonsei University International Campus in Songdo, Incheon.
Leading bio-health companies, including Samsung Biologics and Celltrion, are expected to spend 10 trillion won for the sector’s growth by 2023, the government said.
The largest investment will go into pharmaceutical products, followed by medical devices and healthcare services. The healthcare sector has a small market size but will achieve the most rapid growth, the government said.
According to the government, if the companies implement their investment plans successfully, the bio-health industry’s output will expand about 20 percent annually on average and create 9,300 new jobs by 2023.
The government’s support for bio-health will be more important than ever because it is important to form a virtuous cycle where individual companies’ successful investments lead to the industry’s growth, and the growth creates another investment, the government said.
To boost the effect of the companies’ investments in R&D and production, the government will help localize the production of materials, parts, and equipment for drug manufacturing.
The government will also help medical device makers enter the packaging market, expand data use and digital healthcare services, and advance their growth by enhancing their regional base.
Also, to respond to fast changes in technologies and convergence trends, the government will accelerate biotechnology convergence, preemptively secure core technologies, and establish the foundation for R&D, it said.
To do so, the government increased the 2021 budget for bio-health R&D by 30 percent on-year to 1.7 trillion won and more than doubled the budget to 640 billion won for research in pan-government cooperation.