W100 bil. fund to aid pharmaceutical firms

By Kim Jae-won

The government will launch a 100 billion won ($89.8 million) pharmaceutical fund in August to help local companies develop advanced technology and expand to overseas markets.

The Ministry of Health and Welfare said Tuesday that it will invest 20 billion won in the “Global Pharmaceutical Industry Support Fund” which will be supervised by the state-run Korea Health Industry Development Institute.

Pension funds and state-run financial companies are expected to invest in the fund, the ministry said.

“The fund will be used as a vehicle for Korean pharmaceutical companies to acquire foreign firms or advance into overseas markets,” said Han Young-gyu, an official of the ministry.

Han said that Korea’s pharmaceutical industry will grow with the funds because it has competitiveness in generics and clinical trials. He added that the target regions will vary from North America to Asia and Europe.

The ministry said it plans to host a show at Seoul’s President Hotel today to invite investors and promote the project.

It will also brief on the qualifications for a fund management company, which will be selected by the end of next month.