MOHW seeks measures to attract domestic investment

such as by attracting multinational pharmaceutical company production plants

In response to the National Assembly’s Health and Welfare Committee's request for measures, MOHW responded that it will “meet with relevant associations to survey their intentions.”

Janssen Vaccines’ “Incheon Songdo Bio Plant” and Otsuka Korea's “Hwaseong Plant” presented as examples

The government is seeking ways to encourage multinational pharmaceutical companies to strengthen domestic investment, including the establishment of new pharmaceutical production plants in Korea.

 

However, international trade issues and other obstacles remain to be overcome to attract domestic investment from multinational pharmaceutical companies, and it remains uncertain whether practical measures can be established.

 

On the 30th, the Ministry of Health and Welfare announced this plan in response to the National Assembly Health and Welfare Committee's inquiry regarding the current status of domestic investment by global pharmaceutical companies and incentives.

 

The MOHW agreed with the committee in that in order for South Korea to become a pharmaceutical and bio powerhouse, it is essential to not only expand investment by domestic pharmaceutical companies but also attract investment from global pharmaceutical companies.

 

As an example of a global pharmaceutical company establishing a factory or production base in South Korea, the MOHW cited Janssen Vaccines, which operates a biopharmaceutical manufacturing plant in Songdo, Incheon.

 

Another example is Otsuka Pharmaceutical Korea, which operates a factory in Hwaseong, Gyeonggi Province, capable of synthesizing active pharmaceutical ingredients and producing finished pharmaceutical products.

 

The MOHW announced that it will investigate whether multinational pharmaceutical companies are willing to invest in Korea, what their difficulties are, and what incentives would be effective in attracting investment.

 

To this end, the MOHW is expected to meet with the Korean Research-based Pharmaceutical Industry Association (KRPIA) to discuss the multinational pharmaceutical companies’ interest in domestic investment.

 

The MOHW stated, “Domestic investment by global pharmaceutical companies has many positive effects in terms of securing infrastructure and creating jobs,” adding, “We will work with relevant associations to identify the investment intentions and difficulties of global pharmaceutical companies in Korea and come up with measures to attract investment.”