Korea’s biotechnology industry grew form $800 million in 2000 to $2.7 billion in 2005 for an average increase of 13.5% per year in the last four years.
The medical sector accounts for about 40% of production in Korea’s biotechnology industry. Major products which are being actively developed included hepatitis vaccines, antibiotic, amino acid and lysine, and more recently, post-genomics related products.
Approximately 600 companies make up Korea’s biotechnology industry, and more then half are located in the capital area. The industry, however, is moving toward geographic diversification thanks to government policies that nurture bio-clusters throughout the country.
As of 2005 Korea’s biotechnology industry employed approximately 12,200 people, 54% of whom are in R&D, and 46% in production. In line with global trends, Korea’s bio-industry is strengthening its R&D capacity in genomics, proteomics, and bioinformatics. There are also new researches done in bio-products through the incorporation of cutting-edge technologies.
As of 2005, imports into Korea’s biotechnology industry were estimated at U$880 million. Biomedicine topped the list with 71%, followed by bio-processing and equipment. The industry’s exports amounted to U$1.1 billion. Bio-products such as lycine and amino acids accounted to 71%, with biomedicines making up the remainder.
The private sector was also active in investments in Korea’s bio-industry. Large corporations, for example, operated fully integrated processes, form research and development to production; while startups are specialized in one of three activities.
In order to globally promote Korea’s biotechnology industry, small-and medium-sized enterprises(SMEs) are actively being encouraged to participate in overseas exhibitions.
Tax incentives are available for imports of biotechnology devices and equipment.
Various measures, such ass tax incentives and R&D grants, are being made available to strengthen the R&D infrastructure and to encourage joint R&D among industry, college and institute.
To promote investment in biotechnology by SMEs, bio-funds are available for investment as well as loans for equipment and operations. The Korean government views bio-industry as a growth engine for the 21st century and has annual commitments of over U$60 billion to strengthen its R&D and infrastructure.
In order to attract leading biotechnology companies from overseas to establish their research and production bases in Korea, various incentive are available:
Tax Breaks: 7years of reduction in corporate, income, registration, property taxes.
Cash Grants; 5%-15% of cash grant depending on the technology transfer and number of jobs created. \
R&D: government subsidy of up to 80% of salary(limit: 30milion won/yr) for a maximum of five years, depending on the number of skilled jobs created.
Imports and distribution of bio-medicine and bio-foods are regulated by the Korea Food &Drug Administration (KFDA). Recently, the KFDA is providing services from a demand-side perspective from the development to commercialization.
For further information, visit http://eng.kobioven.or.kr.
Korea BioVenture Association(KOBIOVEN)
F8 Seoil Plaza # 703-5 Kangnam-Gu,
Yeoksam-Dong, Seoul (135-513)
Phone: +82-2-552-4749
Fax: +82-2-552-4840
Web site: http://eng.kobioven.or.kr
Contact: Lydia Son, Assistant Manager