MOHW ‘will support pharma amid U.S. drug tariff plans’

Ministry of Health and Welfare, “We will support domestic companies according to the U.S. drug tariff details”

Support plans include financial aid and market access support for affected firms

“Will foster bio-materials, parts, and equipment industry as the “next semiconductor industry” through budget initiatives”

The Ministry of Health and Welfare (MOHW) has pledged to strengthen support measures for Korean pharmaceutical and biotech companies potentially impacted by the U.S.

 

Trump administration's drug tariff policy.

 

However, no specific policies or systems have been announced yet.

 

The government plans to respond once the details of the U.S.

 

administration's proposed drug tariff measures are announced.

 

The MOHW also stated it is implementing various budget projects to foster and localize the materials, parts, and equipment (MPE) industry, which includes active pharmaceutical ingredients for biopharmaceuticals.

 

This information comes from reviewing the Ministry's response submitted to the National Assembly's Health and Welfare Committee on the 27th for its NA audit.

 

In response to concerns over potential damage from the U.S.

 

plan to impose 100% tariffs on pharmaceuticals, the ministry said, “We will expand measures to strengthen export competitiveness, including financial support and new market development for affected companies.” The ministry explained that while President Trump mentioned plans for a 100% drug tariff, no official government announcement specifying the scope or items subject to the tariff has been made yet.

 

The ministry elaborated, “If high tariffs are imposed, it will inevitably impact exports to the U.S.

 

by domestic pharmaceutical and biotech companies.

 

We need to confirm the details of the U.S.

 

administration's specific drug tariff announcement.” It further announced, “The Ministry of Health and Welfare, together with the Ministry of Trade, Industry and Energy, held an emergency meeting with export companies on September 29 regarding the announcement of pharmaceutical tariffs to gather industry opinions.

 

We will strengthen countermeasures for companies affected by tariffs in the biohealth sector to minimize the impact on domestic companies.” Regarding plans to foster the bio-materials and equipment sector as the “second semiconductor MPE” industry, the ministry emphasized that “this holds high importance from a national health security perspective.” The ministry stated it is supporting companies with costs for performance evaluations, such as testing, analysis, and certification, as well as consulting for overseas approvals, to promote the domestic production of vaccines and raw materials, which Korea is currently heavily import-dependent.

 

For 2024, KRW 2.1 billion was allocated to support performance testing of domestically produced vaccine APIs.

 

The ministry also announced new initiatives for the next year, pledging to continue nurturing the bio-materials and equipment sector.

 

“The government's plan for next year includes new projects for the domestic production of bio raw materials and components, reflecting our ongoing commitment to fostering the bio MPE industry.

 

 We will provide support through budgeted projects, including KRW 10 billion for stabilizing the supply of bio raw materials and components, KRW 1.5 billion for diversifying raw material procurement, KRW 500 million for stockpiling essential medicines, and KRW 8.1 billion for advancing the manufacturing of export-oriented pharmaceuticals.”