The South Korean government signalled its effort to boost the nation’s biopharmaceutical industry with the launch of the K-BioPharma Next Bridge programme at the start of this year (2026)1. The programme links Korean biotechnology companies with multinational pharmaceutical companies for knowledge exchange and potential partnership/collaboration. To date, six major pharmaceutical companies have signed on: Roche, AbbVie, Amgen, Novo Nordisk, MSD, and AstraZeneca.
Recognising the momentum, two pharma giants, Roche and Eli Lilly, have signed separate Memorandums of Understanding (MoU) with the South Korean government, pledging to invest in the country’s biopharmaceutical industry2,3. The MoU is a formal document outlining the agreement between two collaborating parties4. Though not legally binding, the MoU is often taken seriously as it indicates that an official contract is imminent5.
Roche pledged to invest ~£350M into clinical trials and talent development in the country2. Lilly followed suit, pledging to invest ~£375M over five years, focusing on clinical trials and the opening of an incubator (Lilly Gateway Labs)3.
The South Korean government’s moves aim to grow its domestic biopharmaceutical industry, which currently consists of relatively small biotech companies lacking international experience and knowledge1. Through partnership with international biopharmas, the government provide its domestic companies with access to the expertise needed to expand their global competitiveness.
By participating in the South Korean programme, the biopharmaceutical giant gains access to innovations/new technologies from agile biotechnology companies in an emerging market6. The government searches and sources potential local business partners; the pharma giant simply selects from the provided list.
By signing the pledges with the South Korean authority, the companies could build goodwill with a government that is showing interest in expanding its biopharmaceutical industry. This could lead to favourable government treatment and negotiation leverage in the future.
A good example of companies successfully building government goodwill and influence is AstraZeneca. The company has a long history of partnership with the UK government on projects aiming to improve outcomes for UK patients7. The accumulated goodwill paid off when the company received publicity and financial support from the government for its planned 2025 UK investment of £650M8,9. The company later reduced this investment after a drug pricing dispute with the NHS and the government’s decision to cut financial support. The reduction sparked debates within the UK Parliament, demonstrating the company’s influence8.
Thus, moving early to gain the support of an interested government is a long-term move, easing entry into a major emerging market. This could also help to diversify, spreading risks across different countries in the face of uncertainty due to growing geopolitical tensions.
The recent waves of investment in the South Korean biopharmaceutical industry bring important strategic lessons. First, it highlights the importance of gaining trust and building goodwill with governments. Second, it is a reminder of the importance of geographical diversification. Most importantly, it showcases how companies should pay attention to opportunities, not just from market signals, but also from governments. The following questions may help companies stay alert to this less-obvious form of opportunity:
What governments are expressing interest in the industry?
What countries are potential future markets?
What government programmes/partnership opportunities are available?