Korea aims to become biopharm product powerhouse

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Korea aims to become biopharm product powerhouse

Published: 19 Jul. 2023, 16:49 Updated: 19 Jul. 2023, 16:52

Trade, Industry, and Energy Minister Lee Chang-yang, left, looks around the Seoul Biohub in Dongdaemun District, eastern Seoul, on Wednesday. [MINISTRY OF TRADE, INDUSTRY AND ENERGY]

Korea aims to become a global leading manufacturing powerhouse for biopharmaceutical products and hit $50 billion in bio-related sector exports by 2030.

The ambitious target was included in the government’s “bioeconomy 2.0” initiative announced Wednesday.

“Bio-products, often considered the next semiconductor, is the future growth engine that needs to be strategically fostered,” Minister of Trade, Industry and Energy Lee Chang-yang said during a roundtable meeting held that day at Seoul Biohub in Dongdaemun District, eastern Seoul.

The meeting, chaired by the minister, was attended by representatives from companies in biopharmaceuticals, biofuel, or other bio-related businesses, including Samsung Biologics CEO John Rim, Celltrion Holdings CEO Yoo Heon-young, SK bioscience Vice President Kim Pa-leun, Lotte Biologics CEO Richard Lee, as well as representatives from CJ CheilJedang, Hyundai Oilbank and S-Oil.

Attendees from research institutes and industry lobby groups, including the Korea Biotechnology Industry Organization, Korea Digital Health Industry Association, and Korea Bio-energy Association, were also present.

The bioeconomy 2.0 initiative, which is extending its scope from biopharmaceuticals to other bio-related sectors, aims to drive up the development and production of new biomaterials while enabling the deployment of biofuels on a commercial scale. The plan also aims to bring Korea’s biopharmaceutical manufacturing capabilities to a global top-tier level.

The ultimate goal is to hit 100 trillion won ($79 billion) in bio-related production and an export volume of $50 billion by 2030.

“Despite the bioeconomy's vast potential, Korea still lacks the infrastructure to drive up the growth,” the Industry Ministry said in a release, stressing that it will work with the private sector to expand and bolster the bioeconomy by “securing a leading position in biopharmaceutical manufacturing while fostering promising bio-related sectors such as biomaterials, bioenergy and digital bio health.”

The government will expand tax benefits for biopharmaceuticals, and provide land sites and other necessary infrastructure for production plants. It aims to secure domestic production capabilities for 10 percent of biopharmaceutical product raw materials by 2027 and push the figure to 15 percent by 2030, from the current 5 percent.

For biomaterials such as biodegradable plastics, the ministry plans to set up industrial standards and guidelines to establish an administrative foundation and produce 200,000 tons of bio-naphtha by 2030.

The government will also increase the minimum volume of renewable fuels that are required to be contained in diesel fuels from the current 5 percent to 8 percent by 2030.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]