Technology Alliance Korea-US... New Bio Technologies to Be Discussed at the Negotiation Table

Technology and Supply Chain Exchange... Korea's 'Support and Regulatory Easing' and US 'Bio Innovation Acceleration Strategy' Collaboration Potential

President-elect Yoon Suk-yeol is visiting Camp Humphreys, the U.S. military base in Pyeongtaek, Gyeonggi Province, on the 7th, engaging in discussions with officials. [Photo by U.S. Forces Korea Public Affairs Office]

[Asia Economy Reporter Baek Kyunghwan] It has been confirmed that President Yoon Suk-yeol and U.S. President Joe Biden are in the final stages of coordinating to include cooperation in the bio and space sectors, in addition to semiconductors and nuclear power, as agenda items for their first summit. Analysts interpret this as reflecting an intention to discuss as many fields as possible, given that strengthening the South Korea-U.S. alliance is the main purpose of this summit. Specific cooperation plans regarding vaccines and satellites are being proposed. In particular, bio is a sector where the U.S. is focusing efforts to stabilize supply chains alongside semiconductors and batteries, and the South Korean government has also designated the concentrated fostering of the bio industry as a national policy task.

According to multiple presidential office officials on the 20th, South Korea and the U.S. have entered final negotiations on placing bio industry technology cooperation and supply chain exchanges on the negotiation table ahead of this summit. A presidential office official explained on the day, "Discussions have taken place on new technology sectors overall, including nuclear power, bio, and space, in addition to semiconductors and batteries," adding, "The final agenda will be confirmed shortly before President Biden’s visit to Korea."

Earlier, President Yoon announced a national policy task to develop the bio industry as a leading export sector and to expand its supply base accordingly. This aligns with supply chain management, which is considered a core agenda of President Biden’s visit. The Biden administration has identified South Korea as its most critical partner in pursuing the stabilization of semiconductor, battery, and bio supply chains.

In particular, the Yoon administration has prepared various support measures to promote the rapidly growing bio industry, which expanded significantly due to COVID-19. The national policy tasks include numerous commitments to support bio industry research and development and to ease regulations. The Biden administration is also advancing a 'Bio Innovation Acceleration Strategy,' which focuses on concentrated investment in the bio industry and the establishment of research project institutions. Through technological cooperation between the two countries, a draft could be developed for mid- to long-term supply chain exchanges. Cooperation in the space sector is also noteworthy. During his candidacy, President Yoon selected the space sector as a new frontier alongside nuclear reactors and supply chains.

Domestic companies have already begun investing in the U.S. bio industry. Lotte Group has chosen the U.S. as the first investment destination for its bio business and resolved to acquire Bristol-Myers Squibb (BMS)’s U.S. bio-pharmaceutical production plant for $160 million (approximately 200 billion KRW). President Biden’s plan to hold a dinner with the heads of South Korea’s top 10 conglomerates on the day of the summit is in the same context. Following his visit to Samsung Electronics’ semiconductor plant in Pyeongtaek, Gyeonggi Province, on the first day of his visit, he is also scheduled to meet with Chung Eui-sun, Chairman of Hyundai Motor Group, on the 22nd. A presidential office official stated, "The Biden administration’s interest and willingness to cooperate on economic security beyond North Korean nuclear issues are higher than ever," adding, "The final agenda on global technology issues may comprehensively include various fields."

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