On July 28th, the Korean Pharmaceutical and Bio-Pharma Manufacturers Association (KPBMA) enthusiastically announced its support for the government's proposed tax revision bill for 2023. The bill, aimed at bolstering the economy and promoting corporate investments, particularly in the pharmaceutical and bio-pharma industries, received strong endorsement from the association.

The proposed tax revision bill, unveiled on July 27th, incorporates the bio-pharmaceutical sector into the national strategic technology category and introduces specific technologies and business facilities eligible for tax benefits. The bill encompasses eight technologies related to the discovery and manufacturing of bio-pharmaceutical candidates, as well as technologies involved in clinical phases 1 to 3. Additionally, it includes four business facilities related to the manufacturing of biopharmaceuticals.

In response to these proposed revisions, the KPBMA expressed their confidence that the industry's research and development efforts will expand, leading to increased investment in production infrastructure.

This year, the government has consistently presented strategies aimed at fostering and supporting the pharmaceutical and bio-pharma industries, with the goal of establishing South Korea as a global leader in the bio-health sector. The government has already designated bio-pharma as a national advanced strategic industry and has introduced tax support measures to further bolster the sector.

The KPBMA commended the government's commitment to revitalizing the national economy and deeply appreciated its determination to foster the growth of the pharmaceutical and bio-pharma industries.

According to the association, the domestic pharmaceutical and bio-pharma industries have been accelerating innovation through aggressive R&D investments, aiming to develop breakthrough new drugs and embracing diverse open innovation approaches. Furthermore, they are working towards securing global competitiveness to solidify their position as leaders in the pharmaceutical and bio-pharma sector, leveraging their advanced research and development capabilities and production infrastructure.

Therefore, the government's decision is deemed highly timely and is viewed as a catalyst that will further promote research and development, as well as innovation, in the industry. The association expressed hope that the government will continue to proactively consider tax support for essential pharmaceuticals, including raw materials and crucial drugs, which form the foundation of pharmaceutical sovereignty.

The association emphasized its dedication to safeguarding the lives and health of the nation's citizens, pledging to spare no effort in achieving the national goal of becoming a global leader in the pharmaceutical and bio-pharma sector.