The Korean Health and Welfare Ministry announced that by 2020, the government will spend KRW 146 billion ($126 million) to subsidize drug firms. The funding aims to make Korea the seventh-largest drug industry by increasing its share of the export market from 0.2% to 5.4%. Under the plan, 10 new drugs will be produced by 12 firms that will compete for the subsidies. Qualifying firms must invest 5% or more of their revenues in R&D if they have sales greater than KRW 100 billion and 7% or more of their revenues if their sales are less than KRW 100 billion. Foreign firms can apply if their R&D spending in Korea meets the requirements. The government intends to create eight specialized drug firms focusing on rare diseases, two global drug firms with over $10 billion in annual sales and two global generic drug companies. The selected firms will receive as much as a 30% tax cut for R&D and increased loans.

Source: The Korea Herald