Govt plans to expand CDMO capacity by 2.5 times

Expectations rise on increased investments by Korean companies including Samsung Biologics

Govt launches National Bio Commission... to leap to become the Top 5 bio Powerhouse

Will raise KRW 1 trillion as K-Bio-Vaccine Fund...currently stands at KRW 600 billion

The government plans to expand Korea’s CDMO manufacturing capacity 2.5 times by 2032 to become the No.

 

1 global CDMO by 2032.

 

It will also support domestic companies with a 'megafund' by expanding the size of the K-Bio-Vaccine Fund, currently at KRW 600 billion, to over KRW 1 trillion.

 

The government launched the National Bio Commission in anticipation of the global bio market growing to KRW 3.3 trillion by 2027.

 

According to the 'Vision and Mission of the National Bio Commission (draft)’ released at the first meeting, the government will quickly create mega funds worth more than KRW 1 trillion, such as the K-Bio-Vaccine Fund, for early investment and scale-up of bio companies, and build a growth ladder by expanding policy finance and trade insurance support, including preferential interest rates and expanded loan limits.

 

To promote R&D activities of companies, the government will activate M&As and expand tax credits by adding bio-related technologies such as bio buffer and bio jet fuel to the list of national strategic technologies.

 

Also, it will support corporate growth by expanding support bases such as K-Biodesk and Boston CIC (Cambridge Innovation Center) in major overseas countries, along with management consulting and overseas certification support.

 

Sung-hyuk Yoon, Director General of the Ministry of Trade, Industry and Energy

“The KRW 1 trillion megafund will be based on the KRW 50 billion Korea Fund for startups in the bio sector, the KRW 300 billion fund created by the Ministry of Health and Welfare, and the KRW 100 billion fund dedicated to green bio and food tech by the Ministry of Agriculture, Food and Rural Affairs,” said Sung-hyuk Yoon, Director General of the Ministry of Trade, Industry and Energy's Advanced Industry Policy Bureau.

 

The K-Bio-Vaccine Fund, which the government has been funding since 2023, is worth KRW 306.6 billion.

 

The third and fourth funds are currently being established, and if the fifth fund is added this year, it will total KRW 600 billion.

 

To expand private investment, the government will reactivate M&A by abolishing the obligation to sell VC stakes and providing loan guarantees for acquisition funds, and expand tax credit benefits by adding bio-related technologies such as bio buffers and bio aviation oil to the list of national strategic technologies.

 

In addition, by 2032, domestic CDMOs plan to expand their production capacity to 2.5 times the current level.

 

“The production capacity of CDMOs in Songdo, Incheon is about 870,000 liters,” said Yoon, adding, ”Domestic CDMOs such as Samsung Biologics are planning to invest KRW 21 trillion, and if this amount is executed, the production capacity will increase to 2.16 million liters by 2032, making it possible to rank first in the world in terms of sales and capacity.” To support the manufacturing base of domestic biotech companies that have the technology to discover new drug candidates but do not have production facilities, the government plans to utilize five public CDMOs already established to help them commercialize their technologies, including cell line manufacturing, sample, and finished product production.

 

In addition, the government will build a Korean bio cluster.

 

It plans to promote convergence between various fields such as red, green, white, and blue bio by linking high-tech medical complexes, R&D zones, and industrial complexes nationwide, and create an ecosystem that runs from R&D to commercialization by attracting key institutions (universities, research institutes, companies, and hospitals).

 

In addition to establishing a 'Bio Cluster Commission’ under the National Bio Committee, it will jointly utilize regional equipment, experts, and startup support programs through a 'virtual platform' connecting 20 clusters, and expand exchanges with leading clusters overseas.

 

“The health and medical sector has been investing and industrializing for so long that there are currently about 18 clusters across the country,” said an MOHW official.

 

”We cannot physically gather all of them like the Boston cluster in the United States, so we will create a system to share resources based on the virtual platform, such as the facilities, equipment, and incubation centers that each cluster has.”