SEOUL, KOREA - In order to encourage small- and medium-sized pharmaceutical companies to develop new drugs and expand overseas, the government will create an investment fund worth 100 billion won by July this year.

To that end, the Ministry of Health and Welfare will chip in 20 billion won while other state-run organizations such as pension funds and public financial institutions will make up the remaining balance.

 

The ministry said this on February 20 as part of its "new rule on managing funds to nurture global pharmaceutical companies" in an administrative notice. This is the first time for the government to form an investment fund to foster globally competitive drug companies.

 

The fund will take the form similar to the Korea Venture Fund, with the Korea Health Industry Development Institute taking the responsibility of managing the fund. The fund management firms will be selected by a nine-person selection committee after deliberation.