Government: "Leap to No.1 Manufacturing Nation by 2030 through Bio-Killer Regulation Improvement"

'Bioeconomy 2.0 Promotion Direction' Announcement
Lee Chang-yang "Designation of Biopharmaceuticals as National Strategic Technology"
Raw Materials Also Fostered... 15% Localization Rate by 2030

John Lim, CEO of Samsung Biologics
"China's Wuxi Receives National Support
We Also Desperately Need Government-Level Incentives"

The government has announced its determination to attract 15.7 trillion won in private investment by 2030 under the banner of 'Bioeconomy 2.0' and to leap to become the world's number one biopharmaceutical manufacturing country by 2030 through related support. While major countries such as the United States, Europe (EU), and Japan are competitively preparing and implementing bioindustry promotion measures, although somewhat late, our government has also revealed plans to actively support improvements such as eliminating 'killer regulations' and expanding tax credits.

On the afternoon of the 19th, the 'Bioeconomy 2.0 Roundtable' is being held at Seoul Bio Hub in Dongdaemun-gu, Seoul.
[Photo by Lee Chunhee]

On the afternoon of the 19th, Lee Chang-yang, Minister of Trade, Industry and Energy, stated at the 'Bioeconomy 2.0 Roundtable' held at Seoul Bio Hub in Dongdaemun-gu, Seoul, "Bio is a future food source called the second semiconductor and a field that requires strategic nurturing," and announced that to strengthen the foundation for revitalizing the bioeconomy, "we will identify and improve bio killer regulations." This was in line with the government's recent launch of the 'Killer Regulation Innovation TF,' which selected 15 key killer regulations, signaling a move to abolish regulations and strengthen similar efforts in the bio sector.

At the event, along with the announcement of the 'Bioeconomy 2.0 Promotion Direction,' which focuses on building such foundations and promoting various industries, the launch ceremony of the 'Bioeconomy Alliance,' consisting of the Ministry of Trade, Industry and Energy, related associations and academic societies, and industrial support organizations, was also held.

Goal of 'World's No. 1 Biopharmaceutical Manufacturing Country' and '15% Localization Rate of Materials, Parts, and Equipment' by 2030

The core goal emphasized by the government in the Bioeconomy 2.0 Promotion Direction is to become the 'world's number one biopharmaceutical manufacturing country by 2030.' Minister Lee said, "With large-scale private investment, we have achieved the world's second-largest bio capability," and added, "We will strengthen support to leap to the number one manufacturing powerhouse." The key is to promote private investment amounting to 15.7 trillion won by 2030.

To this end, the current national strategic technologies related to bio, which are limited to vaccines, will be expanded to biopharmaceuticals. Minister Lee said, "To promote private investment, we will designate strategic technologies and significantly expand tax credits for facilities and research and development (R&D) investments." Additionally, there are plans to establish a national foundry for bio foundry technology through synthetic biology, which is evaluated as an innovative technology enabling rapid biopharmaceutical development.

However, an industry insider commented, "Although the government is promoting the expansion of tax credits, there are considerable concerns that the conditions for tax credits will be stringent," and added, "Effective policies will be possible only if practical conditions tailored to the characteristics of the bioindustry are established together."

On the afternoon of the 19th, participants of the 'Bioeconomy Alliance' inauguration ceremony are taking a commemorative photo at the 'Bioeconomy 2.0 Roundtable' held at Seoul Bio Hub in Dongdaemun-gu, Seoul.
[Photo by Lee Chunhee]

Furthermore, active growth support for related industries will be carried out in parallel. This reflects criticism that while the domestic bioindustry is rapidly growing centered on Samsung Biologics' contract development and manufacturing organization (CDMO), the growth of other related fields is relatively slow. Minister Lee emphasized, "Except for the manufacturing sector, private investment is low and the industrial base is insufficient," and stressed, "It is urgent to present a vision encompassing the entire bioeconomy and to prepare comprehensive and systematic measures."

Regarding this, the government plans to raise the localization rate of bio raw materials and parts, currently at about 5%, to 10% by 2027 and 15% by 2030. To achieve this, it will push for the designation of a specialized complex for materials, parts, and equipment (SoBuJang) in the bio sector within this month, followed by the designation of a national advanced strategic industrial complex for bio in the second half of the year.

The government will also engage in digital convergence, which is rapidly combining with the bio field. It has set a goal to create a utilization base and produce more than 50 successful cases of digital technology convergence products.

John Rim: "Government-level incentives are essential... Tax benefits, regulatory easing, and workforce support needed"

Meanwhile, John Rim, CEO of Samsung Biologics, who gave a presentation on 'Trends in Biopharmaceutical Contract Development and Manufacturing Organization (CDMO),' said, "China's WuXi Biologics has continuously expanded its investment scale with government support, acquiring Pfizer's production plant in Hangzhou, China, and Chinese CDMO companies," and added, "For aggressive global investment, we also urgently need government-level investment incentives." Despite having world-class production capacity of 604,000 liters through continuous investment, he pointed out the need for government support as competitors such as Lonza, Boehringer Ingelheim, WuXi, and Fujifilm Diosynth continue to increase their capabilities.

On the afternoon of the 19th, John Rim, CEO of Samsung Biologics, is giving a case presentation at the "Bioeconomy 2.0 Roundtable" held at Seoul Bio Hub in Dongdaemun-gu, Seoul.
[Photo by Lee Chunhee]

CEO Rim emphasized, "There are high risks and large-scale investments required until successful drug development and commercialization," and said, "Support such as tax benefits and regulatory easing is necessary to develop new drugs." Regarding workforce, he also stated, "There is a severe shortage of specialized personnel domestically," and added, "It would be greatly helpful if the government and educational institutions provide technical education needed in the bioindustry field and build infrastructure."

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