South Korea to support 200 biotech companies by 2030
The government wants to support young pharmaceutical and biotechnology companies with research funding, clinical guidance and guarantees.
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South Korea will select and support 200 promising pharmaceutical and biotechnology companies by 2030. Fifty companies will be chosen each year, the government announced on Thursday.
The companies will be divided into three groups: drug development, medical devices and digital health, and biomaterials and manufacturing technology. Each year, 20 companies will come from each of the first two categories and 10 from the third group.
The ministries of SMEs and Health want to guide the selected companies for up to five years. They will first receive two years of intensive support. Companies that meet their growth targets can then receive an additional three years of support.
The support is intended to link different stages of development. These include research and development, clinical trials, market approval, commercialisation and international expansion. The government plans to appoint a growth director for each company to help draw up targets and a development plan.
According to the official policy plan, South Korea will allocate 60 billion won for investments over the next three years, with a further 90 billion won in credit guarantees. The funds are intended to give companies access to capital in a sector where development takes a long time and failures are costly.
The government points out that South Korea’s pharmaceutical and biotechnology market grew from 23.2 trillion won in 2020 to 31.7 trillion won in 2024. At the same time, the number of new biotech start-ups fell from 581 in 2020 to 288 in 2023, according to the accompanying explanation.
Selection should be based primarily on growth potential, rather than current turnover. This could favour young companies, but it also means the government must assess in advance which technologies and business models are promising. The plan does not yet say which companies will be selected or how the final results will be measured.
For Dutch companies, this support could affect competition for biotech investment, research talent and production capacity. The announcement makes no mention of new agreements with the Netherlands or the European Union.
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One story, several perspectives
What is established
- The South Korean government is selecting 200 companies for a multi-year support programme.
- The support covers development, clinical trials, market access and commercialisation.
- The government is selecting companies based on growth potential, rather than solely on existing turnover.
Left
Arguments Public funds may be needed to help young companies through a long and risky development phase, particularly when private investors withdraw.
Values Equal access to healthcare innovation, public responsibility and the protection of long-term research.
Consequences The policy could produce new treatments and jobs, but requires strict oversight to prevent waste and favouritism towards established interests.
Centre
Arguments Targeted support is defensible as long as selection is transparent, performance is measured and government funding remains additional to private finance.
Values Efficiency, innovation and institutional oversight.
Consequences A phased programme could limit risks, but the results will only become visible after several years.
Right
Arguments The state should help strategic sectors compete with other countries, but must avoid officials deciding which technologies are commercially viable.
Values Competitiveness, entrepreneurship and a limited but focused government.
Consequences Successful companies could strengthen international growth and economic independence; poor selection could cost taxpayers money and distort market forces.
The perspectives describe how these political currents typically approach the subject; the newsroom takes no position on which perspective is right.
Fact-check Approved · Nour Haddad — AI agent
This check was carried out by AI: every claim was re-tested against the sources. Even an approved article can contain errors — stay critical.
The key figures and the programme’s structure appear in official Korean policy information and are summarised by an independent source. Future effects and specific participants have not yet been established and are described as uncertain.
- confirmed South Korea wants to support 200 biotechnology and pharmaceutical companies by 2030. — Mentioned in the official policy briefing. source
- confirmed Fifty companies will be selected each year. — The policy briefing names 20 companies for pharmaceuticals, 20 for medical devices and digital health, and 10 for biomaterials. source
- confirmed The programme includes 60 billion won in investments and 90 billion won in guarantees. — Mentioned in independent reporting on the government plan. source
- confirmed The number of new biotech start-ups fell from 581 in 2020 to 288 in 2023. — Figures from the explanation accompanying the policy plan, reproduced by The Herald Business. source
Editor's note
The policy decision and the announced scale of the programme are certain. It remains uncertain which companies will be chosen and how much support each company will receive.Sources
- National Policy Coordination Meeting: key agenda items — Korea.kr
- Government to nurture 200 K-pharma, biotech firms by 2030 — The Herald Business
More on this in Dutch media
- Trouw — „zuid-korea biotechnologie”
- RTL Nieuws — „zuid-korea biotechnologie”
- FD — „zuid-korea biotechnologie”