The Ministry of SMEs and Startups (MSS) has announced plans to bolster Korea-Japan bio cooperation, focusing on key areas such as verification, technology development, corporate collaboration, investment, non-clinical and clinical studies, and licensing. These efforts follow the ‘Korea-Japan Bio Entrepreneurs Roundtable,’ chaired by Minister Oh Youngju in May at Shonan iPark, Japan.

Eight companies, selected from the Chungbuk Advanced Regenerative Bio Global Innovation Special Zone, will relocate to Shonan iPark starting this September to begin large-scale verification, research, and development (R&D) activities. These companies aim to advance cell and gene therapies, including treatments for arthritis, organoid-based regenerative therapies, and therapies using induced pluripotent stem cells. Due to regulatory hurdles in Korea, these firms are looking to pursue joint R&D initiatives with prominent Japanese institutions such as Tokyo Medical University Hospital, Kyushu University, and Astellas Pharma.

On September 26, Lim Jeong-wook, Deputy Minister of the Office of Startup and Venture Innovation, met with representatives from the Chungbuk Special Zone companies at Shonan iPark. He reviewed their verification and R&D plans, offering encouragement as they embark on this cross-border collaboration. The meeting also attracted participation from three Japanese venture capital firms, including the operator of the Korea-Japan Joint Fund, as well as Korean Venture Investment Corp (KVIC), who discussed potential investment opportunities.

Japanese venture capitalists at the event emphasized global market entry strategies through partnerships with Japanese pharmaceutical companies and were optimistic about the technical and business potential of the Korean companies.

In the bio sector, drug development methods are increasingly diversified, with cell and gene therapies becoming more prominent. Rising costs have led to the outsourcing of parts of the development process to specialized institutions, such as Contract Research Organizations (CROs), which play a crucial role in drug screening, pharmacology, and quality management during the R&D phase.

On September 25, Deputy Minister Lim also met with representatives from Mediport and Nemoto Science, two key CROs in the ‘Shonan New Drug Support Consortium,’ to discuss support strategies for Korean companies. They explored collaboration plans with financial institutions, including Japanese banks, to facilitate investment linkage.

Further strengthening ties, Lim will meet with Taro Matsunaga, Vice Chairman of Astellas Pharma, on September 27. Astellas is Japan’s second-largest pharmaceutical company and ranks 22nd globally. At the Tsukuba Research Center, they will explore Korean companies’ participation in industry-academia-research collaborations, potential partnerships with AI and ICT firms, and the exchange of regenerative medicine experts. In addition, Lim will discuss decentralized clinical trials and AI healthcare cooperation with Kazuo Nakamura, Chairman of CMIC Pharma Science, Japan’s first CRO.

On the same day, Yoon Seok-bae, Director of the Special Economic Zones Policy Division at the MSS, will meet with his counterpart from Japan’s Ministry of Economy, Trade, and Industry to discuss government-level support for Korean bio ventures in Japan, including company establishment and licensing issues.

PARK Hyeon-sook, CEO of CEfO Bio and Chair of the Chungbuk Special Zone Business Council, highlighted the challenges faced by venture companies in expanding overseas, noting, “The detailed support from the MSS serves as a strong foundation for our global expansion efforts.”

Deputy Minister Lim emphasized the importance of collaboration in advancing bio ventures’ new drug development, saying, “While domestic support is crucial, it has limitations. We are committed to fostering a global cooperation ecosystem that would be difficult for individual companies to access on their own.”