Government: 14 Domestic Vaccine Companies to Invest 68.4 Billion KRW in Facilities by July

Health and Welfare Minister Kwon Deok-cheol is attending the 'Vaccine-raw Material Company Investment Promotion Meeting' held at KOTRA in Seocho-gu, Seoul on the 13th. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Kim Daehyun] The government and 14 domestic vaccine and raw material companies announced their goal to expedite the establishment of a global vaccine hub by completing facility investments worth 68.4 billion KRW by July this year.

On the morning of the 13th, the Ministry of Health and Welfare and the Ministry of Trade, Industry and Energy held a "Vaccine and Raw Material Company Investment Promotion Meeting" at KOTRA in Seocho-gu, Seoul, where they explained this plan.

The 68.4 billion KRW for purchasing facilities and equipment includes 18 billion KRW in government support funds and 50.4 billion KRW in companies' own investment funds. The government and companies plan to complete the facility investments by July.

In particular, more than 34% (23.8 billion KRW) of the purchase funds will be used for prioritizing domestic equipment purchases. The government stated that this aims to support sales channels and improve management conditions for domestic equipment companies. In the domestic vaccine and raw material production sector, 847 new jobs will be created by 2025, which is expected to help alleviate youth unemployment and foster highly skilled personnel.

Additionally, the government explained that it will expand production capabilities across various vaccine platforms such as mRNA, viral vector, and synthetic antigen to lead the establishment of a global vaccine production base.

Measures to strengthen support for expanding vaccine and raw material exports were also announced. The government will double the trade insurance limits for vaccine export companies, offer premium discounts, and support loan funds for domestic production facility investments aimed at vaccine exports. In the second quarter, vaccine business forums will be held in the US and Europe, and in the third quarter, in Asia and Africa, with plans to support company-specific overseas expansion services.

Meanwhile, due to contract manufacturing of COVID-19 vaccines, last year's vaccine export value tripled compared to the previous year, reaching 520 million USD, achieving a record high. With the expansion of the global vaccine market, exports of vaccine carriers and cold boxes reached 1.35 billion USD last year, and exports of syringes and others also achieved record highs.

Minister of Health and Welfare Kwon Deok-cheol stated, "It is time to secure domestic technology and expand independent production capabilities for various vaccine platforms to ensure vaccine sovereignty," adding, "We will provide meticulous support with the determination to see this through, centered on the joint Global Vaccine Hub Promotion Task Force of related ministries."

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