Ministry of Health and Welfare and Ministry of Trade, Industry and Energy Jointly Announce Results of the 1st Vaccine Industry Survey
Investment of 159 Vaccine Companies 330 Billion KRW...Exports 620 Billion KRW
[Asia Economy Reporter Jo In-kyung] Domestic vaccine companies recorded a total domestic sales of 3.4 trillion KRW last year by selling vaccine finished products, raw materials, and vaccine equipment. The export amount totaled 620 billion KRW, of which vaccine finished product exports accounted for 560 billion KRW.
According to the '2021 Domestic Vaccine Industry Survey' announced on the 6th by the Ministry of Health and Welfare and the Ministry of Trade, Industry and Energy, the business areas of 159 domestic vaccine companies were distributed as follows: vaccine finished products 29.6%, vaccine raw materials 32.1%, vaccine equipment 15.1%, and vaccine-related services 35.8%. Some vaccine companies operate in two or more of these four business areas.
Companies engaged in the vaccine industry were located 33.3% (53 companies) in Seoul and 32.1% (51 companies) in Gyeonggi Province based on their headquarters. By company size, large enterprises accounted for 3.1% (5 companies), mid-sized enterprises 26.4% (42 companies), and small and medium enterprises 70.4% (112 companies). Compared to the overall manufacturing industry, the proportion of mid-sized enterprises, which play the role of the 'backbone of the industry,' was considerably high. Based on capital establishment, domestic companies (purely domestic capital) accounted for 90% (143 companies), foreign-invested companies 5% (8 companies), and joint ventures (foreign + domestic capital) 5% (8 companies).
Last year, the domestic sales amount in the vaccine industry sector totaled 3.4178 trillion KRW. By category, vaccine finished products accounted for 2.6865 trillion KRW, vaccine raw materials 86.5 billion KRW, vaccine equipment 69.4 billion KRW, and vaccine-related services 636.1 billion KRW.
Also, vaccine industry exports totaled 628.7 billion KRW, with vaccine finished products at 563.7 billion KRW, vaccine raw materials 141 billion KRW, vaccine equipment 43 billion KRW, and vaccine-related services 76.3 billion KRW.
Investment in the vaccine industry sector included 214 billion KRW for research and development and 117.4 billion KRW for facility investment, totaling 331.4 billion KRW. Considering that ongoing or planned facility investments by vaccine and bio companies exceed 13 trillion KRW, facility investments are expected to expand annually.
Among the total workforce of 44,312 employees in vaccine companies, more than 10,758 were engaged in vaccine-related departments. By job type, production workers accounted for 43.8% (4,715 people), researchers 25.8% (2,772 people), and sales, management, and other positions 30.4% (3,271 people).
Regarding research and development, vaccine companies cited on-site challenges such as lack of funds (47.2%, 75 companies), shortage of specialized personnel (25.2%, 40 companies), and insufficient infrastructure like research equipment (22.0%, 35 companies). In the commercialization process, difficulties included lack of funds (40.3%, 64 companies), lack of information on market trends (24.5%, 39 companies), and shortage of specialized personnel (20.8%, 33 companies). Regarding regulations, challenges were faced in Ministry of Food and Drug Safety approvals (62.3%, 99 companies), clinical trials (37.1%, 59 companies), national batch release approval (28.3%, 45 companies), and the Korea Disease Control and Prevention Agency's national vaccination bidding system (25.2%, 40 companies).
This survey, conducted by the Korea Pharmaceutical and Bio-Pharma Manufacturers Association, the Korea Precision Chemical Industry Promotion Association, and Korea Evaluation Data, is the first questionnaire survey specialized in the vaccine industry. The government plans to comprehensively consider the linkage, consistency, and population design with the existing annual bioindustry survey conducted by the Ministry of Trade, Industry and Energy, and after consultation with Statistics Korea, start reviewing approval of the domestic vaccine industry survey as a national statistic from next year.
Meanwhile, on the same day, the Ministry of Health and Welfare and the Ministry of Trade, Industry and Energy jointly held the 'Public-Private Joint Vaccine Industry Innovation Forum' at the ENA Hotel in Seoul, introducing support for private R&D and investment tax credits in the vaccine and bio industry, K-Bio and vaccine fund support, smart factory construction support, low-interest loan financing projects, and overseas expansion support projects.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
