German pharmaceutical and biotech company Merck has officially embarked on new drug development, leveraging the AI technology of IT powerhouse Korea. Merck is currently conducting seven joint research projects with KAIST (Korea Advanced Institute of Science and Technology) and plans to establish a bioprocessing center. Specifically, Merck is focusing on developing treatments for rare diseases, utilizing AI to maximize efficiency across the entire process, from novel drug candidate discovery to clinical trial design. Korea's robust IT infrastructure, AI expertise, and rapid R&D pace are cited as key reasons for Merck's decision. AI-driven drug development can shorten development periods from 10 years to 4-5 years compared to traditional methods, and also reduce costs by 30-50%. Through its collaboration with KAIST, Merck is building a diverse pipeline, including treatments for rare diseases, cancer, and immune disorders, aiming to file IND (Investigational New Drug) applications for 2-3 AI-designed drug candidates by 2026. Merck is also paying close attention to Korea's biomanufacturing capabilities and plans to enhance production efficiency and strengthen its global supply chain through the bioprocessing center. The reason global pharmaceutical companies are focusing on Korea's AI technology is clear. Korea boasts world-class IT infrastructure and AI talent, along with proactive government support policies for bio-AI convergence. Merck's entry into Korea demonstrates that K-Bio is establishing itself not merely as a production base, but as an innovation hub for global new drug development. It is anticipated that other global big pharma companies, such as Pfizer and Novartis, will also expand their AI collaborations in Korea in the future.