Ministry of SMEs and Startups Signs Business Agreement with MFDS... "Supporting R&D for Health Functional Food SMEs"

[Asia Economy Reporter Junhyung Lee] On the 8th, the Ministry of SMEs and Startups announced that it signed a memorandum of understanding (MOU) with the Ministry of Food and Drug Safety at the Conrad Hotel in Yeouido, Seoul, to support the promotion and advancement of new technology and new product development for small and medium-sized enterprises (SMEs) in the health functional food sector. The signing ceremony was attended by Won Young-jun, Director of Technology Innovation Policy at the Ministry of SMEs and Startups, and Lee Seung-yong, Director of the Food Safety Policy Bureau at the Ministry of Food and Drug Safety.

This agreement was made to establish a collaborative system for promoting technological innovation in SMEs and generating results in health functional food technology development. The Ministry of SMEs and Startups and the Ministry of Food and Drug Safety will provide close support throughout the entire research and development (R&D) cycle, from the preliminary review stage of health functional food research projects to clinical trials. This plan supports setting the direction of technology development by diagnosing and evaluating compliance with safety regulatory standards and product feasibility from the early planning stage of R&D. They will also actively support resolving corporate difficulties and advancing commercialization through consulting related to permits and approvals, and conducting education.

According to the Ministry of SMEs and Startups, the domestic health functional food market has an average annual growth rate of about 11%. However, the domestic health functional food industry mainly consists of small and micro enterprises, and there are considerable difficulties related to new product development due to financial difficulties and insufficient regulatory response, the ministry explained. The collaboration between the Ministry of SMEs and Startups and the Ministry of Food and Drug Safety is expected to increase the R&D success rate of SMEs and foster the growth of the health functional food industry.

Director Lee stated, "The Ministry of Food and Drug Safety will help health functional food SMEs successfully carry out R&D through proper regulatory guidance," adding, "We will closely cooperate between the two ministries so that (health functional food SMEs) can enter not only the domestic market but also the global market."

Director Won said, "As the demand and interest in health have increased due to the spread of COVID-19, the health functional food industry continues to grow," and added, "We will actively collaborate between ministries and make every effort to commercialize health functional food technology development products."