Seoul: More than 7 out of 10 South Korean biotech companies are facing financial difficulties, and nearly 4 in 10 have considered selling their business, a survey showed Wednesday.
According to Yonhap News Agency, the survey carried out by the Korea Biotechnology Industry Organization revealed that 74 percent of chief executive officers (CEOs) and executives of 136 local biotech companies reported unstable funding conditions. Additionally, 76 percent indicated that their research and development (R and D) schedules have been disrupted due to funding challenges.
Some 58 percent of biotech firms expressed uncertainty about when their financial situation might improve. The data also showed that 38 percent of biotech business leaders have considered selling their companies due to ongoing financial pressure. Furthermore, 47.8 percent stated they would be open to selling if an appropriate buyer emerged.
Based on the survey findings, the bio organization proposed 10 policy recommendations to the government aimed at strengthening the country's biotech ecosystem. These proposals include fostering startups, expanding R and D support, encouraging investment, creating a large-scale commercialization fund, and easing financial regulations.