Total Project Cost of 272.6 Billion KRW Invested Over 9 Years Starting from 2023
[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Lee Young, hereinafter referred to as the Ministry) announced on the 21st that the 'K-Bio Lab Hub Construction Project,' a specialized support project for startup companies in the pharmaceutical bio sector, has passed the preliminary feasibility study for the national research and development project. Accordingly, from 2023 to 2031, approximately 272.6 billion KRW will be invested to establish dedicated research support facilities in the Songdo area of Incheon Metropolitan City and foster innovative startup companies. This project follows the 'K-Bio Lab Hub Construction Plan' jointly announced by related ministries in March last year and embodies the government's need and commitment to specialized support for bio startup companies into a practical support project.
The K-Bio Lab Hub Construction Project is a foundational national R&D project that comprehensively supports pharmaceutical bio startups to grow rapidly by providing office space, research equipment and facilities, support programs, and mentoring. The support targets companies operating in eight major pharmaceutical bio fields for less than 10 years. It directly supports basic research, candidate substance discovery, and toxicity efficacy evaluation with sufficient research equipment and facilities, while the later stages such as non-clinical (approval) licensing and commercialization are supported through cooperation with related institutions.
Selected companies will qualify to reside in the K-Bio Lab Hub for three years and receive a total of 20.3 billion KRW in R&D funds over three years through a customized new drug development support project. Additionally, to resolve various difficulties that may arise during startup and business operations and bio-pharmaceutical R&D processes, they can receive ongoing coaching from a mentoring group composed of the country's top experts in technology and management.
The construction schedule from 2023 to 2026 involves building new drug development startup incubation facilities, community spaces, and advanced research equipment and facilities on the Yonsei University site in Songdo, Incheon Metropolitan City. The facilities will include laboratories equipped with essential startup facilities such as benches, basic experimental equipment, and waste disposal systems, as well as office spaces. The design will feature community rooms combined with rest areas and conference rooms capable of hosting large seminars and small meetings to facilitate active networking between resident companies and partner institutions. Additionally, shared and core research equipment ready for immediate use by early-stage startups and modeling research equipment for new drug development will be provided.
From the second half of 2026, after the completion of construction, resident companies will be recruited nationwide from bio startups, and full-scale operations will commence. The Ministry explained that this will establish a system capable of discovering and systematically nurturing Korea's representative innovative startups that can rapidly grow into global companies. The K-Bio Lab Hub is expected to play a catalytic role in creating a mature bio ecosystem centered on startups, securing innovative technologies, and pioneering the global market.
Park Yong-soon, Director of Startup Promotion Policy at the Ministry, said, "The K-Bio Lab Hub is a core institution for creating a virtuous bio ecosystem where startup companies develop innovative technologies and large pharmaceutical companies commercialize those technologies," adding, "We will strive to discover and nurture innovative startups through the K-Bio Lab Hub so that the domestic bio-health industry can gain global competitiveness and establish itself as the nation's next-generation growth engine."
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