The pharma and biotech industry congratulated and supported President Lee Jae-myung on his inauguration as the 21st president of South Korea.

"We sincerely congratulate President Lee Jae-myung on his inauguration," the Korea Pharmaceutical and BioPharma Manufacturers Association (KPBMA) said in a commentary on Wednesday. "As the president of all Koreans, we expect him to devote himself to social integration, economic growth, and the healthy and happy lives of the Korean people, and we offer our great support.”

The association called for active support from the new government to help Korea become a pharma and bio powerhouse.

"Korea is at a turning point in becoming a pharma-bio powerhouse. The industry has developed 39 new drugs through continuous R&D investments and has the world's third-largest pipeline of new drugs. Last year, the industry recorded technology exports of nearly 9 trillion won ($6.5 billion), and exports of pharmaceutical products have also maintained a high growth rate," the association said.

It noted that the industry is facing a new leap forward based on its innovative potential, including talented human resources, new drug technologies, R&D capabilities, world-class manufacturing infrastructure, and AI convergence technologies.

"The realization of a pharma bio powerhouse can only be achieved through the combined capabilities of the private and public sectors, including the industry's relentless challenge and innovation and the government's bold support," the KPBMA said. "In this regard, the government's pharma bio R&D policy framework should be reoriented toward delivering tangible results."

The association pointed out that the proportion of the government's R&D budget for companies and other industrial sites is 13.5 percent (in 2023), much lower than that of IT (44.5 percent).

“Therefore, expanding R&D support for late-stage clinical and companies close to commercialization is urgent. We will use the government's bold support as a stepping stone to accelerate innovation and challenges and achieve results," it said.

The association also stressed the need to improve the drug pricing system.

"The drug pricing system should be redefined to revitalize the industry's R&D," the association said. "It takes a huge amount of time and resources to develop a new drug, but the chances of success are low. The fruits of innovation should be fairly valued, and a structure should be put in place to ensure that profits are funneled back into R&D through predictable and integrated follow-up."

"The pharmaceutical bio-industry will strengthen its global competitiveness through the creation of an R&D ecosystem and digital innovation and become a strong bulwark to protect the public's health by enhancing its manufacturing capabilities and quality control of raw materials, the association said.

"Today, when drug development and production capabilities are recognized as key assets for economic development and national security, strengthening the competitiveness of the pharmaceutical bio-industry is the surest way to take responsibility for the economy and public health at the same time," it added.