"US Bio Initiative, New Growth Opportunity for Korea... Government Support Must Not Be Delayed"

Korea Bio Association Issue Briefing
Impact Expected Following US Support Plan
Global Bio Competition... Rapid Support Needed

U.S. President Joe Biden. [Image source=EPA Yonhap News]

[Asia Economy Reporter Lee Gwan-joo] As the U.S. government emphasizes domestic research and manufacturing in the bioindustry following semiconductors and electric vehicles, concerns are rising, but there is an assessment that new growth opportunities may open up for Korean bio companies. However, since countries are fiercely competing for bio hegemony, prompt government-level support and measures are needed.

The Korea Bio Association's Bio Economy Research Center analyzed the detailed contents and future impacts of the initiative in an issue briefing report titled "U.S. Biotechnology and Biomanufacturing Initiative" on the 14th.

The report first identified the rapid growth of Chinese biotechnology and the Chinese government's bioeconomy promotion policies as the main background of this initiative. China is the world's second-largest bio market after the U.S., having already surpassed the U.S. in the number of clinical trial registrations for cancer immunotherapy (CAR-T) and gene-editing technology (CRISPR), and its relatively less stringent regulations have led to more active therapeutic development than in the U.S. In particular, in May, the Chinese government announced its first five-year bioeconomy plan, declaring aggressive investment.

Since the specific plans of this initiative have not yet been announced, it is difficult to predict its impact on Korea, but the report emphasized the need to carefully examine how the U.S. plans to support "strengthening biomanufacturing capabilities" and "expanding mandatory purchases of bio-based products." The report explained, "Depending on the level of tax benefits or incentives to support the establishment and activation of biomanufacturing infrastructure in the U.S., the types of products subject to purchase, and conditions regarding the use of overseas raw materials in bio-based products, companies exporting to the U.S., seeking local entry, or competing with U.S. companies abroad may be affected."

Nevertheless, the initiative is also expected to become an opportunity for Korean companies. The report emphasized, "If the U.S. develops new biotechnology, expands biomanufacturing infrastructure, and increases purchases of bio-based products, and if our companies' strengths are utilized and participation as an ally expands in this process, it will present new growth opportunities for us."

Along with this, government-level response and support measures are also required. The report stated, "With China and the U.S. consecutively announcing full-scale investments and support for the bioeconomy, it is expected that advanced countries such as Europe and Japan will also consider expanding their investments," adding, "If our government's response and support measures are delayed, our bioindustry competitiveness will fall further behind."