Global Vaccine Raw Material Company Makes First Domestic Production Facility Investment Since COVID-19

Signing Ceremony of the Korea-US Vaccine Cooperation Agreement... Expectation to Establish a Stable Vaccine Supply Chain and Become a Global Vaccine Hub

[Sejong=Asia Economy Reporter Kwon Haeyoung] A global vaccine raw material production company has reported an investment in production facilities in Korea for the first time since COVID-19. This is expected to contribute to establishing a stable supply chain for vaccine raw materials and to Korea's leap as a global vaccine hub.

According to the government on the 22nd, on the 21st (local time) in New York, USA, where the United Nations (UN) General Assembly is being held, the 'Korea-US Vaccine Cooperation Agreement Signing Ceremony' and the 'Korea-US Global Vaccine Business Roundtable' were held, producing such outcomes. This event was to concretize cooperation plans between Korean and US vaccine companies and research institutions and to seek ways to overcome the global health crisis through solidarity and cooperation in the private sector.

The global life sciences company Cytiva submitted an investment report for establishing production facilities in Korea for high value-added cell culture media at the Korea-US Vaccine Cooperation Agreement Signing Ceremony. Representatives from 17 vaccine-related companies and research institutions from Korea and the US attended and signed four memorandums of understanding (MOUs) between companies regarding raw material supply, joint vaccine development, contract manufacturing, and infectious disease response research cooperation, as well as four MOUs between research institutions.

At the subsequent Korea-US Global Vaccine Business Roundtable, representatives from 12 vaccine companies from both countries gathered to exchange various opinions on expanding vaccine production through technological cooperation, ensuring stable supply of vaccine raw materials, and cooperation plans for COVID-19 vaccine and next-generation vaccine development.

Attendees included Kwon Deok-cheol, Minister of Health and Welfare, Yeo Han-gu, Director-General for Trade Negotiations at the Ministry of Trade, Industry and Energy, Kwon Soon-man, President of the Korea Health Industry Development Institute, and Kim Sang-mook, Head of Innovation Growth Division at KOTRA. Richard Hatchett, CEO of the Coalition for Epidemic Preparedness Innovations (CEPI), also participated via video for a keynote speech.

Minister of Health and Welfare Kwon Deok-cheol explained Korea's efforts to build a 'Global Vaccine Hub' and an investment plan worth 2.2 trillion won over five years. He said, "To overcome the global infectious disease crisis, vaccine cooperation between Korea and the US must be solidified across all sectors of government and private sectors," adding, "Cooperation between Korean companies with world-class pharmaceutical production capabilities and US companies possessing the world's best vaccine development technologies will be an excellent example of solidarity and cooperation to overcome crises in the pandemic era."

Yeo Han-gu, Director-General for Trade Negotiations at the Ministry of Trade, Industry and Energy, announced plans to support vaccine sector research and development (R&D), human resource training, improvement of production infrastructure, expansion of incentives such as tax and financial benefits for attracting foreign investment, and support for joint entry of Korea-US vaccine companies into third countries utilizing Korea's free trade agreement (FTA) network.