Pharmaceutical Bio 'Control Tower' Installation, Will It Be Possible This Time... Industry Expectations Rise↑

Amendment to Pharmaceutical Industry Act Proposed in National Assembly
Includes Establishment of 'Pharmaceutical Bio Industry Innovation Committee'
Prime Minister to Chair and Oversee Policies
"Will Lay Foundation for Global Pharmaceutical Power"

[Image source=Pixabay]

[Asia Economy Reporter Lee Gwan-ju] As a bill to establish a government 'control tower' for fostering the domestic pharmaceutical and bio industry was proposed in the National Assembly, the industry is openly expressing its expectations. The industry has long argued that the functions for fostering the pharmaceutical and bio industry, which have been dispersed across various ministries, should be integrated to secure health sovereignty.

According to related industry sources on the 7th, Seo Jeong-sook, a member of the National Assembly's Health and Welfare Committee from the People Power Party, officially proposed a partial amendment to the "Special Act on the Promotion and Support of the Pharmaceutical Industry" (Pharmaceutical Industry Act) on the 1st. The amendment includes provisions to establish a government-wide control tower to support the leap to a strong pharmaceutical and bio nation and to more clearly define preferential drug pricing for innovative pharmaceutical companies.

Specifically, the current "Pharmaceutical Industry Promotion and Support Committee" under the Minister of Health and Welfare will be elevated to the "Pharmaceutical Bio Industry Innovation Committee" under the Prime Minister. While the existing committee was chaired by the Minister of Health and Welfare with participation from deputy ministers of related departments, the Pharmaceutical Bio Industry Innovation Committee will be chaired by the Prime Minister and include ministers from related central administrative agencies such as the Ministry of Health and Welfare, Ministry of Economy and Finance, Ministry of Science and ICT, Ministry of Trade, Industry and Energy, as well as experts appointed by the Prime Minister. The elevation in status aims to enable the committee to serve as a government-wide policy coordinator.

If the amended law is enacted, the Pharmaceutical Bio Industry Innovation Committee will become the de facto control tower for industry promotion. It is expected to establish comprehensive plans and implementation plans for pharmaceutical industry promotion and support, formulate mid- to long-term development strategies including research and development, policy finance, tax support, regulatory improvement, and workforce training, and oversee their overall implementation.

Since the COVID-19 pandemic in 2020, the pharmaceutical and bio industry has emphasized the importance of fostering the industry as a means to secure health sovereignty and future growth engines, demanding the establishment of a government-wide control tower. Indeed, global pharmaceutical powerhouses such as the United States and Japan manage industry promotion policies centered on a national control tower, integrating everything from budgets to policies. However, in South Korea, the functions for this have been dispersed across ministries, leading to reduced effectiveness.

Amid this, the pharmaceutical and bio industry has unanimously welcomed the proposed amendment. Four organizations?the Korea Pharmaceutical and Bio-Pharma Manufacturers Association, Korea Bio Association, Korea Bio-Medical Products Association, and Korea Pharmaceutical Traders Association?jointly issued a statement saying, "We expect the Pharmaceutical Bio Industry Innovation Committee to function as a control tower that integrally manages policies for fostering and supporting the pharmaceutical and bio industry." They added, "Furthermore, it will create an environment that motivates companies leading innovation and promotes challenges, laying the foundation for a leap to a global pharmaceutical powerhouse," expressing their confidence.