Korea to Build 'K-CRDMO' Sector Spanning Research to Production
South Korea's Ministry of Health and Welfare will launch a new program next year to develop a "Korean-style CRDMO" sector. This initiative aims to support biopharmaceutical development from early research to production, expanding beyond traditional contract manufacturing. Two projects will be selected, each receiving 49.4 billion won over five years, with 7.8 billion won allocated in the 2027 budget proposal for the first year. The focus areas are expected to be antibody-drug conjugates (ADC) and cell and gene therapy (CGT), with small and mid-sized companies like ST Pharm, ENCell, GC Cell, and Matica Biotechnology identified as potential beneficiaries.
South Korea’s move to fund two K-CRDMO projects, each with 49.4 billion won over five years, reflects a strategic push into advanced biopharmaceutical manufacturing. This goes beyond contract manufacturing (CDMO) by integrating research and development, a critical shift as global pharma companies increasingly outsource early-stage drug discovery. The focus on antibody-drug conjugates (ADC) and cell and gene therapy (CGT) positions Korea in high-growth, high-expertise segments of the biotech market. This initiative specifically targets small and mid-sized companies, rather than large conglomerates, which could foster innovation and create new domestic champions. Companies like ST Pharm in ADCs and ENCell, GC Cell, and Matica Biotechnology in CGT are well-placed to benefit. The program aims to build a comprehensive ecosystem for biopharmaceutical development within Korea, reducing reliance on foreign partners for the entire drug lifecycle.
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