The document discusses Korea's bioindustry and policies to promote its development. It outlines Korea's status in the global bioindustry, which has significant growth potential. While Korea has advanced biotechnology capabilities, its investment, industrial structure and global competitiveness still lag behind major economies. The vision is for Korea to become a leading bioeconomy by 2015. Key policy tasks include pursuing essential R&D, developing regional bioindustry clusters, replacing the petrochemical industry with biochemistry, vitalizing biotech businesses through various supports, and developing human resources in the field.

1. 25th February 2009
Hong, Choong Wan
Biotech and Nanotech Division
Ministry of Knowledge Economy

2. Contents
1. Why Bioindustry?
2. Bioindustry Overview and Policies
3. Korea’s Bioindustry – Opportunities
4. Vision and Policy Direction
5. Policy Tasks
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3. 1. Why Bioindustry?
Future Trends
New Technology Paradigm
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4. Future Trends
글로벌화
Potential to Meet Low-Carbon,
Human Needs Green Growth
Supports health and longevity by Overcome environmental
utilizing cutting-edge technologies. challenges by utilizing biomass,
commercializing biotech, etc.
The bioindustry is a knowledge-based industry that creates value-
added and has great potential to meet the needs of a future society.
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5. New Technology Paradigm
* Richard Oliver, author of The Coming Biotech Age, called biotechnology the Fourth Wave,
the Third Wave being IT.
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6. 2. Bioindustry Overview and Policies
Bioindustry Trends
Bioindustries in major countries
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7. Bioindustry Trends
Significant Growth
Significant Growth New Technologies via Convergence
New Technologies via Convergence
Annual Average Growth $1.3 trillion
IT
New technologies
$600 billion arising from the
Electronics NT
$540 billion convergence of 0
(USD) cutting-edge
technologies such
as IT, NT Machinery Chemicals
2004 2006 2020
High Risk, High Value-added
High Risk, High Value-added Low-Carbon, Green Growth
Low-Carbon, Green Growth
Sustainable growth technologies (e.g. biorefining)
Development of new medicines
is a lengthy, costly process.
Annual value-added of one new medicine
= export of 3 million cars
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8. Bioindustries in Major Economies
By concentrating investment in biotechnology, countries are seeking solutions
to concerns about energy, environment and aging populations.
Measures Taken
Policies established at the federal and state levels to foster the bioindustry on the basis of
world-leading technological competitiveness.
In 2005, the U.S. accounted for 75.7% of global imports, 78.3% of global R&D in the bioindustry.
• State governments continue to increase investment in biotechnology.
• Federal government recently increased support for stem cell research and alleviated regulations.
Has established an EU-wide development strategy emphasizing simultaneous pursuit of
cooperation and competition.
Implementing the seventh Framework Program (2007 to 2013, 9.52 billion euros in investment)
• Focusing on bioenergy in a new strategy to reduce dependence on oil.
Has expedited collaboration among industry, academia and research centers through a biotech
commercialization strategy.
• Stressed the need to develop and commercialize new medicine in its New industry Creation Strategy (May
2004) and Science and Technology Basic Plan for Phase III (2006-2010).
• Adopting a pragmatic approach to R&D, fostering translational research and clinical research alongside cutting-
edge research.
Government to foster nine core areas in an effort to become a biotech stronghold.
• Announced Biotechnology Development Master Plan in September 2005: Nine core areas have been identified
including agriculture, drugs, food and energy.
• Plan to set up biotech clusters in Beijing, Tianjin, Changjiang Delta, Pearl River Delta, etc.
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9. 3. Korea’s Bioindustry
Status of Korea’s Bioindustry
Assessment of Issues
Opportunity: SWOT Analysis
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10. Status of Korea’s Bioindustry
Market Size
Market Size
Production in 2008 was about $3.9 billion (Global market size : $124 billion)
- Annual growth rate from 2006 to 2008 stood around 19.7%
Investment and Industrial Structure
Investment and Industrial Structure
Government investment(‘08) was 920 billion won
- 8.5% of the total government R&D budget (10.8 trillion won)
cf.) US(22.5%), Japan(18%)
Businesses are small and the market has no leading companies or significant
investment.
Technological Competitiveness
Technological Competitiveness
Korea’s level of technology is only about 60 to 70% of that seen in advanced
countries.
Nevertheless, the industry has made many achievements in a short time and
shows great potential.
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11. Issues
Low Investment
Low Investment
Total investment size of Korea government in
bioindustry is smaller than that of one representative
global company.
* R&D investment(‘08) : Korea government - $900 million,
Pfizer - $8000 million
Weak Global Network
Weak Global Network
Korean companies lack a strong global network
comparing with world’s global company.
- only 6 applications to the U.S. FDA for clinical trials of their products.
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12. Issues
Weak Industrial Basis
Weak Industrial Basis
Industrial ecosystem has not formed in place to facilitate
bioventure companies.
Despite the growth of the market, most growth was in food
biotechnology.
-Production share (2006): food biotechnology 43%, biopharmaceuticals 39%,
biochemical technology 6%
Insufficient infrastructures to commercialize research results
through professional services such as CROs and CMOs.
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13. Opportunity: SWOT Analysis
• Advanced technology in the synthesis and
• Weak globalization of bioindustry
manufacture of biopharmaceuticals
• Abundance of researchers with skills in
• Lack of advanced infrastructure
basic biotechnology • Insufficient number of specialists
• Over 20 years of experience in drug • No joint research system in place
development
• Export of numerous technologies regarding
among academia, research and
bio-candidate substances industry
• Potential to expand market in consideration • Competition from China and India, which
of aging population and other factors have an edge in price competitiveness
• Increasing expiration of patents has opened • Insufficient M&As and partnerships
up the biosimilar market among Korean companies
• Well-established base for convergence with • Dependency on overseas partners to
IT, chemical and other related industries conduct clinical trials
• Potential to enter global market in • Strong presence of multinationals in
collaboration with multinationals Korean market
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14. 5. Vision and Policy Direction
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15. Vision and Strategy
To achieve bioeconomy society with healthy lifestyle
7th leading country in bioengineering by 2015
Goals
2008
2008 2015
2015
Competitiveness in patented tech. 14th in 2005 7th
Nurture core researchers 10,000 researchers 17,000
Create industrialized market(production) 3.9 billion won 60 billion won
Pursue core R&D to produce Establish infrastructure
Establish infrastructure
Pursue core R&D to produce
world-class & nurture
& nurture
world-class
products human resources
human resources
products
Global Bio
Revise regulations and
Revise regulations and
Red Bio White Bio
Promote Strengthen regional and
Strengthen regional and
Promote
lay a solid foundation for
lay a solid foundation for biochemical industry
biochemical industry global cooperation
global cooperation
business
business
* Based on the 2nd basic plan to promote bio-engineering
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16. 6. Policy Tasks
Pursuit of Essential R&D Projects
Development of Regional Bioindustry
Development of Biochemical Industry to Replace Petrochemical
Industry
Vitalization of Biotech Businesses
Development of Human Resources
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17. Pursuit of Essential R&D projects
Facilitate development of core and source technologies
Facilitate development of core and source technologies
and commercialization of technologies in pre-clinical and clinical stages
and commercialization of technologies in pre-clinical and clinical stages
Strategic technology development (in 2008, 34.6 billion won),
Biostar project (in 2008, 12.8 billion won)
Pursue essential R&D projects to foster new growth engines
Pursue essential R&D projects to foster new growth engines
in connection with MKE’s Technology Development Support Road Map
in connection with MKE’s Technology Development Support Road Map
Diagnosis : Develop a small, affordable mass spectrometer and a system
to detect diseases at an early stage
Treatment : Develop embryonic and placental stem cell drugs and gene drugs
Materials : Develop body-friendly, next-generation implant technology
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18. Development of Regional Bioindustry
Specialized Bioindustry Cluster
Specialized Bioindustry Cluster
Foster specialized regional biotech centers
while promoting biopharmaceutical businesses in Chungcheong provinces.
- High-tech (Daejeon, Chuncheon), health supplement industry (Yeongdong, Naju), Korean medicine (Jecheon, Daegu)
Through 20 regional centers, provide necessary education to start up
businesses and create jobs.
Regional Bioindustry Clusters
Regional Bioindustry Clusters
Enhanced Network Among Different Clusters
Enhanced Network Among Different Clusters
Enhance regional and global networks.
- Through Korea Bio-Hub center
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19. Development of Biochemical Industry to Replace Petrochemical
Industry
Development of Environmentally Friendly Products Utilizing Biomass and Biotechnology
Development of Environmentally Friendly Products Utilizing Biomass and Biotechnology
R&D investment in biorefinery tech. (08-12, 12.5 billion won) and bioplastics
& 2 additional projects will be supported in 2009.
Establish biorefinery pilot plants,
with joint efforts by industry, universities and research centers.
- Cooperation with local governments to utilize existing petrochemical complexes.
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20. Vitalization of Biotech Businesses
Support for Investment
Support for Investment
Offer support to promising biotech companies by utilizing the Biofund*
* To be established in 2009, 100 billon won
Support for infrastructure
Support for infrastructure
Build Medical multi-complex
- Global R&D hub in medical industry, support research for new medicine
- Invest 5600 billion won by 2027
- select 1~2 regions in 2009
Support for Exports
Support for Exports
Support the commercialization and export of biotechnology
- cGMP-based drug production facilities (Songdo Techno Park)
- a Medical Industry Overseas Marketing Support Center (KOTRA.)
- Exhibition & Confernece (Biokorea, Global Biotech Forum)
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21. Development of Human Resources
Researchers
Researchers
Nurture top researchers by opening specialized graduate schools
* 2 schools, 800 million won in 2009
- Establish master’s and Ph.D. courses in collaboration with industries (medicine,
biotech), academia and research centers to converge IT, nanotech and biotech
Specialists
Specialists
Foster specialists in areas where demand is rising rapidly, such as
cGMP, quality management, biomaterial manufacturing, etc.
* 1.48 billion won in 2009
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