Research Institute Companies Surpass '1000' Milestone... Growing as a Global Innovation Model

Minister Choi Ki-young of the Ministry of Science and ICT is giving opening remarks at the meeting with telecommunications company CEOs held on the 15th at the Government Seoul Office in Jongno-gu, Seoul. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Junho Hwang] The number of research institute companies commercializing the research achievements of public research institutions in research and development special zones has exceeded 1,000. This is the result of 15 years since it began in 2006.

On the 2nd, the Ministry of Science and ICT held a 'Celebration Ceremony for Achieving the 1,000th Research Institute Company' at the Daejeon ICC Hotel. Starting with a video congratulatory message from Prime Minister Chung Sye-kyun, the ceremony included the presentation of the 1,000th research institute company registration certificate and awards for meritorious persons. There were also signing ceremonies for senior companies' fund contributions to establish a dedicated fund for research institute companies, investment attraction agreements, and a panel talk sharing cases of successful research institute companies.

The 1,000th research institute company, OneCureGen Co., Ltd., was established as a joint venture between the Korea Research Institute of Bioscience and Biotechnology and IQURE Co., Ltd., a KOSDAQ-listed company. It is developing platform technology that enhances anticancer efficacy by combining a new anticancer peptide with an oral absorption drug delivery system (DDS).

At the event, the Ministry of Science and ICT announced the 'New Growth Strategy Vision for Research Institute Companies.' The strategy aims to make them a representative model of global innovative companies. It includes expanding startups in high-tech and new industry sectors, diversifying support systems according to growth stages, establishing dedicated funds and expanding investments, and institutional improvements to create an innovation ecosystem. The Ministry plans to submit the strategy to the Research and Development Special Zone Committee after further consultations.

Meanwhile, research institute companies refer to enterprises established within research and development special zones to commercialize research achievements. Public research institutions participate as shareholders beyond technology supply contractors, adopting a business model that involves technology commercialization. Starting with Kolmar BNH Co., Ltd. in 2006, 1,000 research institute companies have been established in 15 years.

The total sales of research institute companies established so far amounted to 739.4 billion KRW as of 2019, and employment created was 3,910 people. Over the past five years, sales increased by 26.1% and employment by 34.5%. The five-year survival rate of research institute companies is 75%, which is 2.6 times higher than that of general companies.

The IPO speed of research institute companies is also faster than that of general companies. They reach IPO in an average of 7.6 years, which is 1.7 times faster than the general company average of 13 years. Kolmar BNH was the first research institute company to be listed on KOSDAQ in 2015, followed by SuzenTech (2019) and Syntekabio (2019). Mikobiomed, JinSystem, and MindsLab are also scheduled to be listed.

Yong Hong-taek, Director of the Research and Development Policy Office at the Ministry of Science and ICT, said, "Achieving the 1,000th research institute company is a meaningful milestone bringing us one step closer to the dream of becoming a science and technology powerhouse." He added, "We will continue to nurture research institute companies and spare no support to ensure that research and development achievements blossom into technology commercialization."

This content was produced with the assistance of AI translation services.