[Bio Workforce Shortage] Talent Supply Fails to Keep Up with Growth... Is the 'K-Bio' Flame Going Out?

Celltrion and Samsung Biologics R&D Workforce
Increased by 30% to 1,006 in 3 Years

Amid a Rush of Talent Recruitment by Large Corporations
Small and Medium Firms Face Growing Hiring Difficulties

Government Workforce Development Plans Diverge from Field Reality
More Benefits Needed to Train Masters and PhDs

Celltrion researchers are conducting studies for new drug development. (Photo by Celltrion)

[Asia Economy Reporters Jihee Kim, Chunhee Lee] Despite entering a growth phase, Korea's bio industry faces growing concerns that a shortage of personnel could hinder its momentum. In particular, as large corporations absorb a large number of research and development (R&D) personnel, it has become increasingly difficult for small and medium-sized bio companies to secure top-level R&D talent. Cases of employees moving to larger pharmaceutical or bio companies after gaining about 3 to 4 years of experience are increasing, leading to the saying that "small and medium-sized companies are military academies."

Given the bio industry's emphasis on expertise, a shortage of experienced and master's/PhD-level personnel is inevitable for the time being, prompting calls for the government to implement drastic measures.

"R&D 1000 personnel"... Samsung Biologics and Celltrion as Black Holes

According to the business reports of each company on the 24th, the R&D personnel of Korea's leading bio companies Samsung Biologics and Celltrion totaled 1,006 as of the first quarter of this year. This marks an increase of over 30% in just over two years from 670 personnel at the end of 2018 (Samsung Biologics 154, Celltrion 516).

In particular, Samsung Biologics' R&D organization more than doubled from 154 to 354 personnel. A Samsung Biologics official explained, "As work concentrated in the Contract Development Organization (CDO) division, we increased related hiring, and the Process Technology (MSAT) division, responsible for technology transfer, also saw personnel growth in a virtuous cycle due to increased orders," adding, "We are continuously increasing necessary personnel regularly or as needed according to demand."

Major pharmaceutical companies are also steadily increasing R&D personnel in line with business expansion such as new drug development. Yuhan Corporation increased from 267 at the end of 2018 to 280 in the first quarter, a 4.9% rise, and Chong Kun Dang increased from 512 to 552, a 7.8% increase. Daewoong Pharmaceutical's R&D personnel grew from 117 to 242. A Daewoong Pharmaceutical official said, "We are driving the development of COVID-19 treatments and new drug pipelines, expanding the R&D proportion company-wide."

The business expansion of large corporations directly exacerbates the manpower shortage of small and medium bio companies. A mid-sized pharmaceutical company official lamented, "Not only small and medium bio companies but also traditional pharmaceutical companies see active movement of personnel to Samsung Biologics and Celltrion," adding, "These companies are more aggressive in investing in talent acquisition and have a higher preference among employees of small companies due to their future vision, so there is no reason to prevent such moves."

A bio industry insider said, "The shortage of R&D personnel has accumulated across the industry for years, and recently, with new technologies such as messenger RNA (mRNA) technology, which has never been researched domestically at the basic research level, gaining attention, finding specialized personnel has become even more difficult," pointing out, "Although universities are expanding bio-related departments, it will take about 10 years for sufficient personnel to be supplied to the market."

"Increase Practical Support to Train Master's and PhD Personnel"

According to the Korea Bioindustry Association's 'Domestic Bio Industry Status Survey Report,' as of 2019, the proportion of advanced personnel such as master's and PhDs in the biopharmaceutical industry approached 30% of the total. Among 20,894 biopharmaceutical industry workers, there were 1,483 PhDs and 4,736 master's degree holders.

Lee Seung-gyu, Vice Chairman of the Korea Bioindustry Association, said, "The R&D part requires at least master's level," adding, "There is especially a shortage of new drug development personnel." He diagnosed, "Large corporations continue to enter new drug development, and bio ventures want to start businesses after recruiting clinical and manufacturing quality control (CMC) personnel. The demand is rapidly increasing, but personnel are insufficient in this transitional phase."

Kim Sung-jin, CEO of Medfact, emphasized, "Even if we try to recruit overseas talent, most excellent personnel gravitate toward Europe or Japan, so it is better to cultivate good personnel domestically," adding, "We should train master's level personnel to deploy them in work and have excellent personnel pursue PhD programs through industry-academia cooperation, referencing Japan's talent development method."

There are also strong calls for the government to take a more active role in cultivating bio personnel. Currently, the government is conducting projects such as specialized graduate schools for the pharmaceutical industry and regulatory affairs (RA) expert training, while promoting the establishment of a 'Bio Process Workforce Training Center' in Songdo, Incheon, aiming to produce 2,000 personnel annually (150 master's and PhDs).

However, the industry evaluates that the specialized graduate schools for the pharmaceutical industry only train master's level personnel, and that RA experts and the Bio Process Workforce Training Center are somewhat detached from directly producing R&D personnel.

Jung Yoon-taek, Director of the Pharmaceutical Industry Strategy Research Institute, said, "R&D should not be viewed only as education; industry-academia cooperation must be expanded," adding, "Although there are commissioned and contract departments, actual benefits are limited, so student applications are low. The government should actively support this."

Director Jung advised, "It is difficult to secure specialized research personnel, and bio ventures have no proper incentives other than stock options," adding, "It is essential to improve systems to allow smooth stock option grants to foreigners and reduce tax burdens on stock options for domestic personnel." Specialized research refers to studies such as candidate substance evaluation and toxicity confirmation conducted from preclinical to clinical phase 1 stages.