LG Chem exec links bio industry success to K-content, stresses open innovation

“The success of K-entertainment businesses like the Netflix series 'Squid Game' is an example of unpredictable success, and the bio industry has something in common with the drama as it is an intellectual property- and uncertainty-based industry. Industries based on intellectual property rights inherently carry very high risks. However, when they succeed, the rewards can be tremendous.”

Son Jee-woong, president of LG Chem’s Life Science Business, said so in the opening ceremony of the “Global Bio Conference (GBC),” which opened at the Grand InterContinental Seoul Parnas Hotel on Wednesday, emphasizing the importance of building an innovation ecosystem.

Explaining the similarities between the biopharmaceutical and the K-entertainment industries, Son noted that the bio industry has much to learn from the success of K-content, such as “Squid Game.” He also cited various partnerships and collaborations as one of the success factors of K-content, stressing that the biopharmaceutical industry can grow through such collaboration and innovation.

“The bio industry requires a development cycle of more than 10 years and huge investment costs, and it is essential to collaborate with various fields and make steady investments to create innovative medicines. The possibility of failure is very high, so how to ‘manage failure is key,’” he said, emphasizing the need to build an innovation ecosystem to solve this problem.

“The bio industry is considered one of the top 10 growth industries in the future and is expected to grow at an average annual rate of more than 9 percent,” Son said, explaining that this growth is driven by the increasing demand for healthcare due to the aging population and advances in science and technology. “New treatment options are constantly emerging, and investments in the bio sector are increasing rapidly,” he said, reiterating the importance of the bio industry.

Son also emphasized the importance of open innovation and introduced various global partnerships that LG Chem is pursuing. In collaboration with Nasdaq-listed Cue Biopharma, LG Chem has introduced three new immuno-oncology drug projects. It also works with British biotech Avacta to codevelop protein therapeutics for cancer and immune diseases.

Son explained that such an open innovation strategy is a crucial driving force behind LG Chem's expansion of its global drug pipeline and strengthening of its research base.

“In the past, pharmaceutical companies tried to do all R&D in-house, but now they can innovate faster and more efficiently by collaborating with outside parties,” he said. Son emphasized the importance of external collaboration, citing data showing that Big Pharma's pipelines now account for more than 70 percent of the total.

Son also emphasized the impact of artificial intelligence (AI) technology on the biopharmaceutical industry.

“AI will bring about significant changes in the R&D value chain,” he said, noting that LG Chem is accelerating its drug discovery projects utilizing AI. Son predicted that these innovative technologies will help accelerate drug development and create a more efficient R&D process.

Son also cited examples from Singapore and Japan, introducing Singapore's bio venture investment and Japan's “Society 5.0” initiative, explaining how these countries put biotechnology at the center of their economic development. “Korea should also recognize the importance of the bio industry in this global trend and focus on active policy support and research and development,” he added.

Lastly, Son also emphasized that innovation in the biopharmaceutical industry should focus on creating value, not just reducing costs.

“Unlike manufacturing in the past, biopharmaceuticals are not about cost competition but about how much value can be created,” he said, adding that this can be realized through open innovation.

In conclusion, Son shared his vision for LG Chem to grow into a global leader in the biopharmaceutical sector. “We will continue to develop innovative medicines for patients through our open innovation strategy and create even greater achievements in the global market,” he said.

GBC 2024, which is celebrating its 10th anniversary this year, will continue through Friday under the theme of “Bio Transformation: Preparing for the New Decade."