Bio Association "Vaccines, National Essential Industry... Welcome Expansion of Tax Credit"

At SK Bioscience L House in Andong-si, Gyeongbuk, packaging work is being carried out for the COVID-19 vaccine 'Skycovione'. (Photo by SK Bioscience)

[Asia Economy Reporter Lee Chun-hee] The Korea Bio Association expressed its strong support on the 3rd through a statement, welcoming the expansion of the tax credit rate for facility investments in national strategic technologies, including vaccines, as decided at the Cabinet meeting that day.

In the 'Measures to Strengthen Tax Support for Semiconductors and Others' announced that morning by Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, the tax credit rate was raised to further expand tax support for national strategic industries such as semiconductors, batteries, and vaccines. Accordingly, the tax credit rate for facility investments in national strategic technologies was increased from 8% to 15% for large and medium-sized enterprises, and from 16% to 25% for small and medium-sized enterprises.

The Bio Association stated, "The vaccine industry has emerged as an essential industry, not a choice, to protect the health and lives of the people amid the COVID-19 pandemic," and interpreted the expansion of the tax credit as "a lever to strengthen the ecosystem by attracting investment in the vaccine development industry and to establish vaccine sovereignty."

The Bio Association emphasized the importance of investment in the vaccine industry, saying, "Vaccine development cannot be achieved in a short period; it requires significant investment, time, and excellent personnel." It also mentioned, "The successful development and market launch of COVID-19 messenger RNA (mRNA) vaccines developed by Pfizer in the U.S., BioNTech in Germany, and Moderna in the U.S. were possible due to long-term research, development, and investment."

On the other hand, regarding domestic vaccines, it noted, "Although the first domestic COVID-19 vaccine was approved last year, it is facing difficulties due to the emergence of various variants and delayed launch compared to vaccines developed in advanced countries," emphasizing the need for investment to overcome these challenges. It added, "Countries around the world are expanding development and investment in antibody therapeutics and cell and gene therapies (CGT)," and "the costs of developing therapeutics and investing in production facilities have increased significantly, and due to the industrial characteristics requiring validation even after investment and completion, it takes a long time to recover the actual investment costs."

Finally, the Bio Association welcomed "the expansion of investment tax credits to support global competitiveness" and stated, "The bio industry will also do its best to respond with increased investment and successful development."

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