MHW supports costs for entering emerging countries or looking for local partners

The Korea government unveils various supportive measures to help domestic pharmaceuticals to enter foreign countries.

MHW (Ministry of Health and Welfare), KHIDI (Korea Health Industry Development Institute), and KPTA (Korea Pharmaceutical Traders Association) held ‘a session for overseas expansion of pharmaceuticals in 2017’ on 13th and introduced new businesses.

The Korean government will subsidize maximum 200million won for two companies (consortium) to establish a company abroad. The company will be responsible for import and distribution in cooperation with local partners in case of overseas expansion. When the companies in the consortium build up a joint company, they also should invest at least the same amount of government subsidy.

When Korean companies enter some emerging countries in the Middle East, Central and South America, and Asia such as Saudi Arabia, Ecuador, Peru, Chile, Brazil, Vietnam, Malaysia, Thailand, the Philippines, and India etc., they can get assistance.

Along the same lines, it will provide expenses for the development of infrastructure to produce export items. Domestic pharmaceuticals will secure competitive edge and expand export based on the development of infrastructure and the government support for GMP mock inspection.

Assistance will be available for Korean pharmaceuticals that prepare for or plan mock inspection to get and renew cGMP or EU GMP certificates of export items. The government will support up to 50% of the mock inspection costs within 50million won. The inspection costs will be about 20million won – about 50million won per a consultant assuming that the inspection is conducted once a day for 5 days. The costs include expenses spent abroad and accommodation fees for 5 days, and consultant fees.

The government supports companies to get WHO PQ (Pre-Qualification) essential for bidding on international supply. It selects 2 companies and provides up to 50% of the costs within 50million won each.

It will help Korean pharmaceuticals that try to find local partners. A total of 10 companies that enter emerging countries and make localization will get up to 5million won each.

The government plans to put the announcement in February and will accept applications, evaluate, and make a contract in March. Localization will be available from March to October. An interim report and a final report will be available in July and November respectively. The balance will be paid during the period.

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