Daegu City to invest KRW 105.8 billion in 2018 to promote its medical industry
KRW 64.6 billion allocated for pharmaceuticals and bio, KRW 37.7 billion for medical devices
Daegu City will invest KRW 105.8 billion, up 10.9% from last year, to support the growth of its medical industry, which is the fastest growing sector of the Fourth Industrial Revolution, thereby fostering the regional economy.
m Daegu City will invest KRW 64.6 billion in the pharmaceuticals and bio sectors, including R&D for neuroscience, and KRW 37.7 billion in the medical devices sector, one of the region’s strongest industries, for a total investment of KRW 95.4 billion (a 10.9% increase from last year).
m More specifically, the city government will devote: KRW 31.3 billion to three tasks to develop technology to diagnose and treat brain disorders such as dementia; KRW 33.3 billion to ten tasks to support the development of new biomaterials of human origin and the development of core technologies for designer proteins; KRW 37.7 billion for nine tasks, including intelligent software development for medical data analysis to foster a customized precision medical industry based on telecommunications technology, and the development of medical practice systems based on digital content (VR/AR/MR); and KRW 3.5 billion to help cover R&D costs at the Daegu-Gyeongbuk Medical Innovation Foundation (DGMIF).
m Due to the economic growth and aging populations of many nations worldwide, the global pharmaceuticals market has grown by 6.2% over the past five years (2011 to 2016) and is currently valued at USD 1.1 trillion (as of the end of 2016). The market is expected to continue to flourish, reaching a value of USD 1.5 trillion by 2021. Over 70% of the market is dominated by advanced countries, and pharmerging markets such as India, China, and Brazil are continuing to grow.
*Pharmerging (a portmanteau of the words “pharmacy” and “emerging”) refers to emerging pharmaceutical markets in the Middle East, Central America, Southeast Asia, China, India, and Russia.
m The United States, Germany, and Japan account for 68% of the global medical device market, which continues to grow 5.1% annually, while the Asia Pacific market and Middle East/African market are expected to experience annual growth of 6.4% and 7.0%, respectively. In the future, in traditional fields such as cardiology, cardiovascular therapeutics, and ophthalmology, demand for cutting-edge convergence medical imaging devices and healthcare IT is also expected to significantly increase.
m Over the past several years, Daegu City has steadily built its capacities to promote the medical industry as one of the region’s new growth engines. The Daegu-Gyeongbuk Medical Innovation Foundation (DGMIF), established in 2013, is emerging as the hub of the nation’s cutting-edge medical industry and has attracted 15 national research institutions, including the Korea Brain Research Institute, as well as 124 medical corporations, including Lutronic, and Dongsung Bio Pharm Co., Ltd. The DGMIF offers companies one-stop support and houses all the institutions needed for the cultivation of manpower and licensing and commercialization within the basic, applied, and clinical sectors.
m The revenues of the 89 companies that have moved into the DGMIF and Medical R&D District have risen by 22.5% from 2014 to 2016 (DGMIF 10.9%, Special R&D District 45.6%), and employment has risen by 28% (DGMIF 10%, special R&D district 46%). These companies are expected to dominate Industry 4.0 and continue to evolve as the new growth engines of Daegu City.
m The city government has also operated the Medi-Start-up program since October to further promote business startups in the medical industry. As part of this program, six venture companies were chosen through a public contest and received support of up to KRW 50 million each.
m Administrative authority for resident companies in the DGMIF was delegated to local governments with the revision of the Special Act on the DGMIF. Following this revision, Daegu City created a One-stop Business Support Team within the DGMIF to provide additional support to resident companies. The support team began operation on January 26.
‒ With the new team, the screening of potential DGMIF resident companies will only take one month. Prior to the creation of the team, screening was handled by the Ministry of Health and Welfare and typically took six months to one year to complete. By integrating DGMIF administrative services and corporate support services, inconveniences to DGMIF residents will be drastically reduced.
m Mayor Kwon Young-jin of the Daegu Metropolitan Government stated, “Instead of being complacent with our current growth in the medical sector, we will continue to develop the DGMIF as the hub of the customized precision medical industry. This development will be executed in tandem with global trends of accelerated medical convergence against the backdrop of the Fourth Industrial Revolution and changes in health and medical service paradigms, and is aimed at continuing to establish Daegu as a global medicity.”