The government has included vaccines and other biopharmaceutical technologies into its list of core strategy technology to produce raw materials, parts, and equipment, drawing keen attention from related industries.
Last Thursday, the Ministry of Trade, Industry and Energy said it would add four biopharmaceutical technologies to its core strategy technology list to support the smooth manufacturing of vaccines and other biopharmaceutical products and facilitate investments into these sectors.
Core strategy technology refers to those that play a core role in the industrial value chain for smooth production and investment activities.
The ministry’s selection criteria include strategic and security importance related to national and industrial activities, domestic technology level, and industrialization stages, such as patent possession, trade volume and international division of labor, influences on industrial production and investment, market growth outlook, and future potential.
The existing 100 core strategy technologies included semiconductor, display, automobile, machinery, electronics, and basic chemicals but excluded bio-related technologies.
The ministry explained that it had decided to add four vaccine and biopharmaceutical technologies to the list in the first half-year, considering the urgent need to develop Covid-19 vaccines and the industry’s demand.
The four biotechnologies included in the list are:
•Core raw material and manufacturing technology to manufacture vaccines (vaccine-making nucleic acid, protein, and virus vectors such as mRNA and DNA).
•Vaccine-formulating materials and manufacturing technology (basic material manufacturing technology such as LNP and immune boosters).
•Core cellular and materials manufacturing technology to manufacture cutting-edge biopharmaceutical products (technology to manufacture cells and virus vectors to make cellular and genetic treatment cells).
•Materials and equipment manufacturing technology for producing biopharmaceutical products (technology to make equipment to culture cells, such as bioreactors and carriers).
Suppose a company produces materials, parts, and equipment using core strategy technology. In that case, it can enjoy various benefits, including eligibility to apply for a “leading company,” eased regulations in environment and employment, tax credits in the acquisition of related companies at home and abroad, and reduced financial burdens when participating in national technology development projects.
“We expect the recent inclusion of biopharmaceutical technologies in the core strategy technology to help optimize end products and production processes through active cooperation and investment between companies that supply and use them,” said Lee Kyong-ho, director for materials, parts, and equipment at the ministry.
The industry welcomed the government’s move.
“The recent inclusion of biopharmaceutical sector in the 100 core strategy technology for the first time indicates the government had come to recognize again the importance of this sector from the aspect of industry and health security,” the KoreaBIO said.
The industry group added that it regarded the move as an opportunity to provide the legal basis for securing essential technology through acquiring foreign companies and receiving deregulatory benefits in promoting the domestic industry.