Korea Bio Association Proposes Ten Key Tasks to Next Government... 76% of Companies Cite Financial Difficulties

Source=Korea Bio Association

A recent survey found that 74% of domestic bio companies are experiencing financial difficulties.

On May 21, the Korea Bio Association released the results of this survey and proposed ten key tasks for building an industrial ecosystem to the next government. The survey was conducted among CEOs and executives of 136 domestic bio companies. According to the survey, 74% of companies reported that their current financial situation is not smooth, and 76% said that financial difficulties have disrupted their research and development (R&D) schedules.

When asked when they expect their financial situation to improve, 58% responded that they do not know. Additionally, 38% of companies said they have considered selling their management rights due to financial difficulties, and when asked if they would be willing to sell if a buyer made an offer now, 47.8%?nearly half?said yes.

However, 71% said they were glad to have started their business, indicating that a strong sense of mission, fulfillment, and confidence in market potential remain high. The association also reported that many respondents remain hopeful about the industry's recovery, government support, and the growth potential of the bio industry, despite the challenging external environment. The most frequently cited actions for the next government to support the industry were expanding the R&D budget and increasing the establishment of bio support funds.

Respondents also pointed out the need to ease regulations, including improving listing regulations such as legal loss requirements, and identified the lack of policy consistency across different administrations as another major obstacle.

Based on this survey, the Korea Bio Association proposed ten key initiatives to the next government to foster the industrial ecosystem, including measures for startups and R&D. The association recommended operating a "Korea Bio Boot Camp" to encourage more startups, expanding bio R&D, and launching a "Blockbuster New Drug Development" initiative to create large-scale commercialization funds.

Source=Korea Bio Association

To further promote AI-driven drug development, the association proposed launching "Bio Stargate," a consortium comprising the government, AI developers, pharmaceutical companies, and investors. Other suggestions included expanding the parent fund for startups and implementing a "Death Valley Crossing Project." The association also called for easing the conditions for technology-special listing and maintenance, establishing academies to train on-site personnel, and appointing dedicated bio regulatory reform officers.

Additionally, the association proposed supporting technology commercialization, strengthening bio materials, components, and equipment, establishing a "Bio Export and Trade Support Center" to assist with licensing and exports, and enacting a comprehensive "Bio Industry Promotion Act."

On the same day, the Korea Bio Association held a forum titled "Crisis of K-Bio: A Grand Transformation Toward Becoming a Global Bio Powerhouse," gathering opinions from experts in academia, industry, and research. The forum was attended by Lee Sangyeop, Vice Chair of the National Bio Committee; Kwon Seokyun, President of the Korea Research Institute of Bioscience and Biotechnology; Lee Byunggun, Advisor at GI Innovation; and Hwang Mansoon, CEO of Korea Investment Partners, among others. The forum is available for viewing on the Korea Bio Association's YouTube channel.

This content was produced with the assistance of AI translation services.