Government Moves to Invest 25 Billion Won to Commercialize Therapies for Rare and Intractable Diseases

Included in the 2027 budget proposal... Public-private joint venture to support early-stage clinical trials
Moving beyond traditional research grants, investment-based R&D to be introduced... Proceeds to be recovered and reinvested

The government will launch a new investment-based research and development (R&D) program worth 25 billion won next year to support the commercialization of gene and cell therapies for rare and intractable diseases. Moving beyond the existing model of providing research funding, the program will involve joint investment by the government and the private sector, with proceeds from commercialization reinvested in R&D.

The Ministry of Science and ICT said on November 4 that it had held a briefing in Seoul at the Science and Technology Convention Center on the “Commercialization of Gene and Cell Therapies for Rare and Intractable Diseases and the Establishment of an Investment Ecosystem” program. The program is planned to run from 2027 to 2031, with 25 billion won from the Future Response Fund included in next year’s government budget proposal.

File photo for illustrative purposes. A research team at the Korea Research Institute of Standards and Science (KRISS) manufactures a reference material for COVID-19 viral genes. Asia Business Daily file photo

Gene and cell therapies treat diseases that are difficult to address with existing methods by editing genes or harnessing the functions of cells. They offer new treatment possibilities for people with rare and intractable diseases, but developing a therapy for actual clinical use requires considerable time and money.

In particular, production facilities that meet Good Manufacturing Practice (GMP) standards and specialized personnel are needed from the preclinical stage onward. As a result, development can be halted when follow-on investment and commercialization capabilities are lacking, even if the research results are promising. This is the so-called “valley of death,” in which basic research findings fail to lead to actual products or services.

Joint public-private investment to support entry into early-stage clinical trials

To overcome these limitations, the government will diversify its existing grant-based R&D support and introduce an investment-based R&D program that combines private capital with commercialization expertise.

At the heart of the program is the establishment of a public-private joint venture specializing in commercialization, with participation from private companies, investors, and technology-holding institutions such as universities and government-funded research institutes. The government and private sector will jointly invest to support promising gene and cell therapy technologies as they enter early-stage clinical trials and move toward commercialization. The plan is to establish a virtuous cycle in which investment proceeds are recovered and reinvested in follow-on R&D.

The briefing outlined the program’s structure, the roles of each participant, and the selection, evaluation, support, and management systems. It also gathered feedback from companies, investors, and technology-holding institutions on investment participation requirements and program operations.

The Ministry of Science and ICT plans to refine the program’s details to reflect feedback from participants, then proceed with the application process after updating relevant regulations and securing final approval of the budget from the National Assembly.

Oh Daehyun, Director General for Future Strategic Technology Policy at the Ministry of Science and ICT, said, “For excellent research findings to lead to the development of actual therapies, technology, capital, and commercialization expertise must come together. We will continue engaging with stakeholders to shape the program so that the government’s seed investment encourages active private-sector participation and the resulting proceeds can be reinvested in national R&D.”

This content was produced with the assistance of AI translation services.