[Asia Economy Reporter Suyeon Woo] KOTRA has proposed new measures to strengthen cooperation between Korea and Russia in the chemical and pharmaceutical sectors on the occasion of the 30th anniversary of diplomatic relations between the two countries.
On the 29th, KOTRA published a report titled "Establishing a New Model for Korea-Russia Economic and Industrial Cooperation: Focusing on the Chemical and Pharmaceutical Industries."
Since establishing diplomatic ties in 1990, Korea-Russia relations have rapidly developed into a mutually complementary structure, with trade volume growing to $22.3 billion last year. Recently, due to the impact of COVID-19, Russia has been building regional manufacturing value chains and fostering new industries.
KOTRA emphasized that Korea-Russia industrial and technological cooperation requires a new approach that goes beyond simply introducing Russian basic technologies for commercialization, reflecting mutual benefits. Rather than simple technology cooperation projects, it is necessary to promote mutual value chain complementation and joint industrial development through a "Korea-Russia Innovation Platform."
First, in the chemical industry, it is advised to identify areas where competitiveness can be specialized through cooperation and to generate results through "technology cooperation-type matching projects." This strategy focuses on creating high added value or producing niche market products in new areas where foreign companies have not yet entered.
In the pharmaceutical industry, it is emphasized that cooperation should start with technology collaboration necessary for new drug development and also consider industrial cooperation aimed at entering the Russian market. The rapid establishment of production bases and market share through local acquisitions by U.S. company Abbott can serve as a good example.
Kwon Pyung-oh, President of KOTRA, stated, "Now is the time to establish new market entry strategies in response to changes in the industrial environment within Russia after COVID-19," and emphasized, "Korea-Russia economic cooperation should fundamentally be based on technology between the two countries to expand opportunities for product manufacturing and market entry."
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