Assemblyman Shin Jeong-hoon: "Bioindustry Has High Added Value and Employment Induction Effects"

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Given the high added value and employment-inducing effects of the bio industry, there is a claim that it should be strategically nurtured as a focal point for ‘growth with employment.’

On the 6th, according to the ‘Analysis of Competitiveness and Economic Contribution of Major Industries’ Exports’ submitted by the National Assembly Budget Office to Assemblyman Shin Jeong-hoon (Jeonnam Naju·Hwasun, Democratic Party, Industry, Trade, Energy, Small and Medium Venture Business Committee), among the six new industries?system semiconductors, next-generation displays, bio, robots, aviation·drones, and electric autonomous vehicles?the system semiconductor industry accounts for more than half of total exports, but its export share sharply declined from 69.1% in 2014 to 52.9% in 2018.

On the other hand, both the export amount and the share of total exports of the bio industry and next-generation display industry significantly increased during the same period.

In particular, the bio industry’s share of exports among the six major new industries rose sharply from 11.1% in 2014 to 20% in 2018, emerging rapidly as a new growth engine.

Furthermore, an analysis using the value-added inducement coefficient to measure the contribution of new industry exports to the overall economy’s value-added (GDP) growth also detected rapid changes in industrial sectors.

The share of value-added inducement effect by system semiconductors among the six new industries decreased continuously from 66.4% in 2014 to 49.6% in 2018, whereas the bio industry’s share rose significantly from 12.7% to 22.2% during the same period.

Moreover, meaningful results were found in the employment inducement coefficient, which measures the contribution of new industry exports to employment growth.

The bio industry’s share of total employment inducement effects among the six new industries surged from 20.2% in 2014 to 32.8% in 2018, while system semiconductors declined from 53.9% to 37.5%, the robot industry from 5.4% to 2.1%, and the aviation·drone industry from 6.3% to 4.8%.

The vaccine·biomedical health industry, based on biotechnology and medical technology, produces products and services by utilizing the functions and information of living organisms. Although there is no clear classification standard, it generally encompasses pharmaceuticals, medical devices, and medical·health services.

According to data submitted by the Ministry of Trade, Industry and Energy, the global pharmaceutical market was approximately $1.4 trillion in 2018, with an expected average annual growth rate of 5.9% from 2018 to 2025. The global vaccine market was $42.6 billion in 2016, and due to technological advances and increased demand from emerging economies, it is projected to grow at an average annual rate of 9.8% from 2016 to 2027.

Assemblyman Shin Jeong-hoon said, “The bio industry is establishing itself as a new future growth engine for the Republic of Korea, and the government’s focused nurturing of new industries with high employment inducement effects is a meaningful indicator showing the potential for creating new jobs. The industrial sectors driving our country’s growth are rapidly changing. With the recent prolonged economic downturn and the slowdown in traditional manufacturing growth, measures are needed to overcome the crisis.”

He added, “We need to improve the industrial structure that depends on key export items, and especially since the bio industry is an active alternative for ‘growth with employment,’ it is necessary to prepare an active new industry development strategy through selection and concentration.”

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