Establishment of Medical Device New Technology 'MedicareTech' and Healthcare New Technology 'MyotechScience'
Business Hub Connecting Bio-Medical New Technology and Business Models
[Asia Economy Reporter Lim Cheol-young] Seoul City announced on the 20th that two research institute companies have been established in the Hongneung Small Giant Research and Development Special Zone (Hongneung Small Giant Special Zone), a key hub leading the K-bio industry. This comes about six months after Hongneung was designated as a Small Giant Special Zone in August last year.
The Small Giant Special Zone is a system introduced in 2018 by the Ministry of Science and ICT to activate technology startups through the commercialization of public institutions' patented technologies and to create a science and technology-based regional innovation growth platform. Once designated as a special zone, various benefits are provided, including government R&D budgets, regulatory exemptions for new technology demonstrations, and national and local tax reductions for research institute companies and advanced technology companies.
Seoul City selected three institutions?KIST, Kyung Hee University, and Korea University?as 'core technology institutions' to make Hongneung the focal point of new growth engines in the northeastern part of Seoul and a pillar for the development of the domestic bio-medical industry. Seoul City promoted the designation of Hongneung as a Small Giant Special Zone, which was confirmed in August last year after review by the Ministry of Science and ICT.
Seoul City announced that two research institute companies have opened in Hongneung: MedicareTech, which holds new medical device technologies contributed by KIST, and MyoTech Science, which holds new healthcare technologies jointly invested by Korea University Technology Holdings.
MedicareTech was established through KIST's technology investment (23.2%). MyoTech Science was established through cash investment (20%) by Korea University Technology Holdings. Research institute companies are enterprises established by public research institutions such as government-funded research institutes and universities, which directly invest 10-20% of the capital to commercialize excellent technologies they possess. They can only be established within research and development special zones.
The establishment of research institute companies signifies the full-scale commercialization of new bio and medical technologies developed in Hongneung. They will collaborate with public research institutions such as KIST and Korea University and receive comprehensive support including corporate tax reductions granted to Small Giant Research and Development Special Zones, R&BD (technology development linked to commercialization) funding, prototype production, market development, and regulatory exemptions for new technology development to advance the commercialization of new technologies.
The two companies were incorporated in September last year, after the designation of the Hongneung Small Giant Special Zone, and have now completed registration as research institute companies.
Seoul City plans to support these research institute companies to serve as hubs that commercialize research outcomes and startup items in the Hongneung area and connect them to business models. The goal is to strengthen the capabilities of K-bio, secure new growth engines in the Hongneung area through new job creation, and establish Hongneung as an international cluster for the bio industry, whose importance has increased after COVID-19.
Meanwhile, starting this year, Seoul City is working with the Ministry of Science and ICT and the three core technology institutions to establish a business plan to actively promote the development project of the Hongneung Small Giant Special Zone. They plan to continue expanding support tailored to nurturing research institute companies with potential to become future unicorn companies and discovering new technologies. Since November last year, efforts have been made to identify about 20 candidate research institute companies in collaboration with the three core technology institutions (KIST, Kyung Hee University, Korea University) and the Ministry of Science and ICT.
Kim Ui-seung, Director of Seoul City's Economic Policy Office, said, "The birth of the first research institute companies in the Hongneung Small Giant Special Zone will be a signal that Hongneung is beginning to commercialize new technologies based on excellent R&BD (technology development linked to commercialization) capabilities and is poised to leap into a world-class bio-medical industry cluster." He added, "Seoul City will further strengthen the full-cycle support platform based on clinical sites in the Hongneung Small Giant Special Zone to enhance the competitiveness of the domestic K-bio industry, which is gaining attention after COVID-19, and to establish a foothold for overseas expansion."
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