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This is the first in a series of interviews with senior executives of Korea's promising biotechnology companies to search for key elements of a bio-policy framework as the new government looks to promote the bio industry. _ ED.
Quick implementation of bio-sector-specific 'regulatory sandbox' crucial for Korea
By Kim Yoo-chul
One of the key takeaways of U.S. President Joe Biden's recent meeting with President Yoon Suk-yeol was the commitment and reaffirmation by the leaders of the two countries to widen their focus beyond the Korean Peninsula to global technological challenges, including ways to deepen cooperation in emerging technologies.
Biden's signature Indo-Pacific Economic Framework (IPEF), aimed at bolstering Washington's efforts to re-engage Indo-Pacific nations on trade and technologies, was officially launched with Korea's participation. Now, cooperation between the two countries in both the public and private sectors is set to increase.
But this time, the prime targets of cooperation are cutting-edge technologies such as semiconductors, batteries, biotechnology, biomanufacturing and artificial intelligence (AI), all of which are critical from a national security standpoint.
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| Panacell Biotech CEO Choi Seung-ho / Courtesy of Panacell Biotech |
The protracted COVID-19 pandemic has been a huge plus for helping Korea expand its presence in the bio industry.
About half of the 10 most valuable companies on the tech-heavy Kosdaq index come from the biotech sector. Manufacturers of biotech drugs such as Samsung Biologics and SK Bioscience saw steep rises in their stock prices and market capitalization as they've been producing treatments and vaccines for COVID-19.
Now, the bio industry is considered to be as strategically important as the semiconductor and battery industries. Yoon and his administration have pledged to boost investments, acknowledging the current and future significance of bio-oriented industries.
But for Korea to become a genuine "bio powerhouse," the government must allow the private sector to use big data, ease regulations on biotech startups and help biotech companies hire talented workers.
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| A health worker takes a swab sample from a man to be tested for COVID-19 at a field station in Beijing on May 23. AFP-Yonhap |
"If skilled workers such as medical and AI experts are nurtured and regulations in the bio-health field are eased, it will be a step closer to internationalization in line with the World Health Organization's (WHO) recent designation of Korea as a global bio-talent hub. On top of that, bio big data should be created and opened to the private sector, and Korea should develop world-class medical technologies through clinical networks on diseases involving major hospitals," Choi Seung-ho, CEO of Panacell Biotech, a Seoul-based biotechnology company, said in a recent interview.
Panacell Biotech has expertise in stem cell technology.
Choi, who is also chairman of the Korea Stem Cell Clinics Society (KSCCS), said Korea needs to create a dedicated organization to minimize administrative regulations and provide support.
Choi said the biotech industry faces good opportunities as well as challenges from big data. Korea plans to spend up to 1 trillion won for six years from 2023 to collect health-related big data from patients and volunteers to establish a national digital library on health data by 2028. The "Bio Data Dam" initiative is mostly aimed at setting up a standard operating procedure for the assimilation and quality control of big data.
Data privacy issues are also important. But high volumes of data, such as DNA sequencing data available to scientists, will help drug developers and researchers address bottlenecks in drug development for clinical trials, and so the Yoon administration is tasked with helping drug developers conduct large-scale data analysis.
Regulations, worker management issues
Policymakers are set to explore necessary factors to help the country progress in bio-related industries. Korea joined the U.S.-led IPEF initiative with the heads of the two countries vowing to level up collective efforts to promote emerging technologies.
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| An employee of Songyo Knitwear Factory in Pyongyang, North Korea, disinfects the factory's floor, May 18, after the country's leader Kim Jong-un declared a state of emergency following a coronavirus outbreak. AP-Yonhap |
Citing the recent WHO announcement that Korea will host a new global bio-manufacturing training hub, Yoon asked the government to ease regulations on biotech startups, increase state-level financial backing and promote the industry.
"I believe the biohealth industry sector, an area in which speed is crucial for innovation, could grow successfully if the government implements a biohealth sector-specific regulatory sandbox as quickly as possible," Choi said.
A "regulatory sandbox" is a system that temporarily authorizes innovative technologies or businesses, allowing firms to test their products in a real market. Since 2019, regulatory sandboxes have been used for the technology and fintech industries. However, one has yet to be introduced to the bio-health sector, which is currently restricted by regulations, according to Choi.
On a related note, WHO Director-General Tedros Adhanom Ghebreyesus recently identified a lack of skilled workers and stifling regulatory systems as the key barriers to Korea's goal of becoming a global manufacturing hub.
"The Korean biotech industry, especially stem cell technology, is losing its competitiveness in the global market because of existing regulations. Biotech is a sector that requires astronomical amounts of investments, including facilities and research centers. This industry should be predictable and it's imperative to protect the intellectual properties of startups, ease medical regulations and facilitate the flow of funds for new technologies," the CEO said.
According to his observation, more than 300,000 people, including Koreans, visit Japan annually to receive "NK Cell Treatment" because Korea prohibits its own companies from receiving cell therapy fees.
"If we implement a 'Foreigner Special Act' for cell therapy as we did for the 'Overseas Patient Attraction Act,' we could attract more foreigners for medical tourism," he said, adding that the government should hold programs such as biotech-related conferences, exhibitions and forums to attract more foreign investments.
"The digital health care and biotech industries could grow more with the government's active support," he added.
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