Plans for Korean Bio Cluster and Mega Funds to Foster Innovation and Growth
On Jan. 23, Acting President and Deputy Prime Minister Choi Sang-mok inaugurated the National Bio Committee at the Seoul Bio Hub. This event marked the first meeting of the committee, which is poised to become the central authority for bio policy in South Korea. In his opening remarks, Choi underscored the importance of nurturing the bio industry as a new economic engine for the nation.

The launch of the National Bio Committee was delayed by approximately a month due to political uncertainties. Despite the delay, the committee is expected to function as a strategic technology body, akin to the National Space Committee and the National AI Committee. Under the banner “The New Continent of Vast Possibilities, the Dawn of the Advanced Bio Era,” the committee has appointed 24 experts, including Prof. Lee Sang-yeop from KAIST, as private members. It is anticipated to hold the highest governance status across various ministries.

During the first meeting, the government unveiled plans to establish a “Korean Bio Cluster” aimed at revolutionizing the entire bio field. This initiative will connect advanced medical complexes, research and development zones, and industrial complexes nationwide, fostering convergence across diverse fields. The National Bio Committee will also form a “Bio Cluster Council” to link approximately 20 clusters through a “virtual platform,” facilitating the joint use of regional equipment, expertise, and startup support programs, while expanding exchanges with leading international clusters.

To ensure both innovation and safety within the bio industry, the government intends to pursue regulatory innovation and enhance bio security. Collaborations with the Regulatory Reform Committee and the Biohealth Innovation Committee will focus on reforming full-cycle regulations. Additionally, the government plans to train 110,000 professionals in the biohealth sector by 2027, expanding multidisciplinary and practical education to address industry mismatches.

A significant goal is to accelerate innovation by integrating biotechnology across various industries, establishing biotechnology sovereignty through a paradigm shift in data-driven R&D, and improving the R&D investment structure. The government aims to reduce the new drug development period from the current 13.7 years to approximately 6 years, while cutting costs from 2 trillion won to 1 trillion won. Furthermore, the collaboration system for bio data will be reorganized around the National Bio Committee, with a target of securing 10 million data cases by 2035 on the National Bio Data Platform.

To support the growth of bio companies, the government will provide essential funding, stimulate private investment, and enhance corporate growth capabilities at each stage. Plans are in place to quickly create mega funds exceeding 1 trillion won, such as the K-Bio and Vaccine Fund. To further promote corporate R&D activities, the government will encourage mergers and acquisitions, add bio-related technologies like bio buffers and bio jet fuel to national strategic technologies, and expand tax credit benefits.

The domestic contract development and manufacturing organization (CDMO) sector aims to increase production capacity to 2.5 times the current level by 2032, aspiring to achieve global leadership in production and sales. Additionally, the government plans to expand bio-specific high-performance computing infrastructure with more than 3,000 GPUs to support these efforts.

Choi emphasized the urgency of action, stating, “Based on the discussed matters, the public and private sectors must quickly derive concrete action plans.” He also committed to launching a support team for the National Bio Committee to closely assist related activities.

As the National Bio Committee embarks on its mission, it represents a strategic shift in South Korea’s economic development, moving from a manufacturing-centered economy to one that embraces the vast potential of the bio industry. This initiative not only aims to position Korea as a leader in biotechnology but also to ensure sustainable economic growth and innovation in the years to come.

Choi Mun-hee, South Korea Launches National Bio Committee to Propel Biotech Industry – Businesskorea, 29 January, 2025