"70% of Medical Patents Are 'Janglong Patents'... Hospitals Must Become K-Bio Innovation Hubs"

Interview with Professor Kim Sang-eun of Bundang Seoul National University Hospital
Commercializing Bio Technology Amid COVID-19 Pandemic Directly Linked to Competitiveness

Professor Kim Sang-eun of Bundang Seoul National University Hospital is speaking about the future of the domestic pharmaceutical and bio industry in an interview with Asia Economy. Photo by Kim Hyun-min kimhyun81@

[Bundang (Seongnam) = Asia Economy Reporter Kim Heung-soon] "Seventy percent of medical-related patents held by domestic hospitals, universities, and research institutions are 'drawer patents' that have not been utilized for business purposes. For these achievements to be recognized for their value, large hospitals need to play the role of innovation hubs, and institutional support is necessary to attract public and private investment."

Professor Kim Sang-eun (62, photo) of Seoul National University College of Medicine Bundang Seoul National University Hospital presented these prerequisites for the domestic medical and bio industry to leap forward in an interview with Asia Economy on the 18th. He emphasized the necessity of commercializing bio technology amid the critical second wave crisis of COVID-19 caused by a surge in confirmed cases related to Sarang Jeil Church. This is because it directly relates to the competitiveness of K-Bio.

"Hospitals Should Establish Technology Holding Companies"
"New Drug Development Is a 'Strategic Investment,' Not Financial"

Domestic pharmaceutical exports reached $5.2 billion (about 6 trillion KRW) last year, growing at an average annual rate of 14.2% over the past five years. Nevertheless, K-Bio's presence in the global market remains minimal. According to statistics from global companies like IBM, the global medical and bio market is valued at $8 trillion (about 9500 trillion KRW), twice the size of the ICT industry ($4 trillion), but Korea's share in this market is only 0.8%.

Professor Kim stressed the need to strengthen the domestic competitiveness of this enormous medical and bio industry. He also added the necessity of nurturing bio ventures that will serve as the backbone of the industrial ecosystem. The pharmaceutical industry operates as a value chain where academia and research sectors discover new drug candidates through basic research, bio ventures commercialize these technologies, and pharmaceutical companies conduct clinical trials. However, despite creative ideas and technologies, bio venture startups are not smooth due to operational difficulties such as funding and infrastructure, fear of failure, and societal perceptions, according to Professor Kim's assessment.

He argued that a technology holding company centered on large hospitals equipped with advanced equipment and facilities should be established to create a framework for research, development, and commercialization of technology. A hospital technology holding company is a specialized organization that invests in and commercializes patents and technologies held by hospitals or research institutions. Under the current Medical Service Act, non-profit hospitals cannot establish technology holding companies to generate added value. Professor Kim said, "If the profits generated from technology businesses in new drug development, medical services, and medical devices are reinvested into the hospital's public projects or research through institutionalization, technology holding companies can be operated rationally." He added, "The infrastructure of domestic hospitals should not be limited to medical treatment but should be allowed to serve as innovation hubs for medical technology development by relaxing related regulations."

Professor Kim Sang-eun, Bundang Seoul National University Hospital / Photo by Hyunmin Kim kimhyun81@

Founded Bio Venture BIK Therapeutics, Appointed CEO
Developed New Drug Delivery Technology After 10 Years of Research
Based on Field Experience, "Need to Establish Corporate Investment Base Through CVC"

Professor Kim openly states that creating a venture ecosystem in the medical and bio fields is not easy because of his firsthand experience. In 2009, he founded the bio venture company BIK Therapeutics with like-minded colleagues. Until recently, he participated by supporting the in-house research team’s R&D while leaving management to professionals, but he was appointed CEO earlier this year.

The company's representative achievement is the 'Elite Drug Delivery Technology' developed in 2018. Human cell membranes have targets where drugs attach, and the core of this technology is to increase the binding rate to these targets and ensure the drug enters the cell and remains there for a long time. Professor Kim explained that since the technology delivers drugs only to specific targets such as cancer cells, side effects can be reduced, and existing new drug candidates that failed due to lack of cell entry can be reutilized through this technology.

He recently proposed that corporate investment in the pharmaceutical and bio industries should be activated through the 'Corporate Venture Capital (CVC)' system, which is currently under legislative discussion in politics and government. CVC refers to venture capital established and owned by large corporations, but under the current Fair Trade Act, it is not permitted due to the principle of separation between financial capital and industrial capital.

Professor Kim emphasized, "The pharmaceutical and bio industries lack sufficient funds to promote research and development, and venture companies alone cannot bear the risk of failure. Instead of financial investments solely seeking profit, a system that induces strategic corporate investments (like CVC) to achieve long-term results is necessary."

▲About Professor Kim Sang-eun…
- Specialist in Nuclear Medicine and Internal Medicine
- Current Professor of Nuclear Medicine, Seoul National University College of Medicine Bundang Seoul National University Hospital
- Current Professor of Molecular Medicine and Bio-Pharmaceutical Sciences, Seoul National University
- Current CEO of Bio Venture Company BIK Therapeutics
- Current Chairman of the Future Convergence Council (Incorporated Association)
- Former Dean of the Graduate School of Convergence Science and Technology, Seoul National University