Current Status and Development Strategy of Bioindustry in Korea

workkinkajouBiotechnology

Dec 5, 2012 (4 years and 11 months ago)

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Review of the biotechnology climate


in Korea:

K
ey players and strategi
e
s

for the future


November 2006

Uhtaek Oh

Sensory Research Center,
CRI

Seoul National University


History of Korean Bioindustry

1980
~
1989 : Technology Development Stage



Introduction & Development of New Biotechnology



Enac瑭tn琠o映䉩B瑥chno汯ly P牯浯瑩on⁌ w, 1983



Es瑡b汩sh浥n琠o映䉩B瑥chno汯ly 䑥灡牴浥n瑳 ☠剥&ea牣h 䥮I瑩瑵tes 楮i啮楶e牳楴楥sⰠ1984



Es瑡b汩sh浥n琠o映瑨t 䭯牥a 剥Rea牣h 䥮I瑩瑵te o映䉩Bsc楥nce ☠䉩&瑥chno汯ly⡋剉䉂⤬ 1985

1990
~
1999 : Product Manufacturing Stage



Establishment of Bioindustry Association of Korea (BAK), 1991



Fo牭r汩z楮i o映䉩B瑥ch 2000 P牯r牡洠m䵏ST⤬‱994



P牯r污業io映䉩B楮ius瑲y V楳楯i 2000 ⡍佃䥅⤬(1994



䑥De汯l浥n琠o映䉩Bp牯ress Techno汯ly ☠&aunch楮i o映䉩B
-
p牯ruc瑳

2000
~
Current : Bioindustry Introduction Stage



Establishment of Korean Bioindustry Development Strategy, 2000




䭥K 乡N楯ia氠S瑲a瑥g楣 䥮Ius瑲y



Inauguration of National Bioindustry Action Plan



Productivity Improvement of Generic Products, Development of New & Modified Bio
-
products



䥮Ies瑭tn琠䥮I牥ase 楮iPub汩c ☠&物va瑥 Sec瑯t

I. Fundamental Structure of Bioindustry in Korea

Total Production of Bioindustry

in Korea


0
0.5
1
1.5
2
2.5
2002
2004
(Bill U$)

2.4

1.9

Market Size of Health
industry



Market

Size

of

Pharmaceutical

Industry

is

7
.
9

billion

US
$

in

2005


The

market

size

of

Korea’s

health

industry

is

one

of

top

10

in

the

world

(’
04
)



~

2
.
1
%

of

the

world

market

Pharmaceuti
cal Industry

Medical
Device
Industry

Food

Industry

Cosmetic
Industry

Global market
share

1.6%

1.4%

1.0%

2.0%

Ranking

10

11

18

12

Department

Main Role

Ministry

of

Commerce,

Industry

and

Energy

(MOCIE)




Appli敤

Bio瑥捨nologi敳

慮d

Indu獴si慬iza瑩on

Ministry

of

Science

and

Technology

(MOST)




B慳楣

慮d

L敡eing
-
敤ge

T散enologi敳

Ministry

of

Education

&

Human

Resources

Development(MOE)




䕤u捡瑩on




A獳s獴慮捥



B慳ac

R敳敡牣桥e



Li晥

卣S敮捥

Mini獴r



H敡e瑨

慮d

W敬晡fe

⡍佈W)




D敶敬op浥mt



N敷

偨慲浡捥m瑩捡ls




Clini捡c

Tri慬s

&

R敧ul慴aons

Ministry

of

Agriculture

&

Forestry

(MAF)




Br敥eing

Ani浡l猬

偬慮瑳




N敷

䙯潤

Addi瑩v敳

Mini獴r



䕮viron浥mt

⡍䔩




偲敳敲e慴aon

慮d

U獥



Biodiv敲獩瑹




D敶敬op浥mt



W慳瑥a

Tr敡瑭敮t

T散enolog

Mini獴r



M慲i瑩浥

&

Fi獨敲i敳

⡍OMAF)




Con獥sv慴aon



M慲ine

R敳eur捥c



Government Role in Bioindustry


Government Role in R&D Investment


Source : Biotechnology Promotion Law

Government R&D investment



R&D investment: 30% Growth Rate every year



As of 2005, approximately 708 million US$:


10% of total R&D

Research Institutes

Governmental Agencies

US$ 708 million R&D Investment by 7 Ministries in 2005

Industries


Bioindustry Association of
Korea

Korea Biotechnology
Research Association

Korea Bio Venture
Association

Biotech Institutes in Private
Companies

Academia

Departments in Universities

University
-
associated
Research Institutes

Science & Engineering
Research Centers

Biotechnology
-
related
Societies

Korea Research Institute of
Bioscience and Biotechnology


POSTECH Biotech Center

Biocluster : Bio Venture
Center & New Region
Promotion Business

Other Governmental or
Public Research Institutes



Government Role and R&D Investment

Proportion of R&D Investment
among Government Sectors

MOCIE

MOHW

MOST

MAF

MOMAF

MOIC

ME

MOE

(Korea ranked
23rd

in 1995 with 933 papers and
13th

in 2004 with 3,213 papers)

No. of BT Research Papers

Listed on the SCI Expanded (

95~

04)


No. of Papers Published in three
Leading Journals (

96~

05)


A significant increase in the number of BT research papers
that are published in international top grade academic
journals such as
Nature, Cell and Science

Annual registration of Korean
patents among the U.S. patents in
BT area

From 2000 to 2003, the number of Korean biotechnology patents

within the U.S. has increased by 85% up to 204

Technological classification of Korean
patents among the U.S. patents in BT area

While researches were focused mainly in the areas of
Bioengineering and Biopharmaceuticals before, more
researches shift to high
-
tech areas such as Genomics
and Proteomics technology from 2000



Academia

I. Fundamental Structure of Bioindustry in Korea


Driving System




Biotechnology
-
related Departments in ~ 40 Universities




Colleges of Medicine, Pharmacy, Science, Agriculture & Engineering




30 University
-
associated Research Institutes on the Genetic Engineering




Institute of Molecular Biology and Genetics, Seoul National University




Science & Engineering Research Centers (2 M U$/year)




Over 20 Centers in Biotechnology

Area in the Universities




Seoul National University, Korea University, Hanyang University, etc.




National Laboratories in Universities
(~300,000 U$/year)




More than 50 Laboratories




Research Centers for Creative Research Initiatives
(~600,000 U$/year)




20 Research Centers

21c Frontier R&D Programs


A long
-
term national R&D program for selective and
intensive development of strategic technologies to upgrade
Korea's national scientific competitiveness to the level of
advanced countries by 2010


Annual Grant: around US$ 10 million US$ annually for each
project for 10 years


21 projects
since 1998
(8
Program Centers in Biotechnology)


80~100 Researchers participate in a Frontier Program


Top
-
down Research Program


Supervised by a director, a leading scientist in the field



Center for Functional Analysis of Human Genome



Center for Biological Modulaters



Neurobiology Research Center



Functional Proteomics Center



Stem Cell Research Center



Center for Microbial Genomics and Applications



Plant Diversity Research Center



Crop Functional Genomics Center

Features of R&D Investment in Korea


Diverse Sources


-

Seven Ministries,


-

Five Major Foundations


(e.g., Korea Science & Engineering Foundation)



Numerous Research Grant Programs with various
sizes and durations



Supported by Laws



Biotechnology Promotion Law’


‘Neuroscience Research Promotion Law’, etc



Research

Institutes





Korea Research Institute of Bioscience and Biotechnology(
KRIBB) is the only government research


institute dedicated to biotechnology research across a broad span of expertise, from basic studies


for the fundamental understanding of life phenomena to applied studies, established in 1985


Korea Research Institute of Bioscience and Biotechnology (KRIBB)




KIST is one of the biggest research institute in Korea. It specialized in various wide research fields

such as Physics, Engineering, Chemistry, and Biotechnology. Recently, research is more focused on

Biotechnology and new drug development.


Korea Institute of Science and Technology (KIST)




KRICT
is a research organization that focus on new drug development


Korea Research Institute of Chemical Technology (KRICT)

I. Fundamental Structure of Bioindustry in Korea


Driving System





Biotechnology Innovation Center, Chuncheon




Bio Venture Center, Daejeon



Center for Biotechnology and Bioventure,


Jeonbuk



Bio21 Center, Kyungnam



Biotechnology Industrialization Center,


Dongshin University



Biotechnology Innovation Center,


Youngdong University



Technology Innovation Center,


Sangju National University



Bioindustry Development Center, Jeju


Marine Biotechnology Center for Functional


Material Industry, Busan




Bio Venture Town, Daejeon



Bio Venture Plaza, Chuncheon



Institute for Marine Bioindustry, Gangneung



Biotechnology Center for Bioindustry, Jeonnam



Biotechnology Research Center, Jeonnam



Biohealth Industry Support Center, Kyungbuk



Bioscience Park, Jeju



Traditional Pharmaceutical R&D Center, Chungbuk



Animal Resources Support Center, Chungnam



Healthcare Industry Center, Chungbuk



Marinebio Enviromental Industry Center, Kyungbuk



Biomaterial Industrialization Center, Daegu



Herb Medicine Support Center, Daegu



Bio Venture Plaza, Kyungnam



Bio
-
Industry Support Center, Busan

New Region Promotion Business(15)

Bio Venture Center(9)



Bioclusters

(
24
)

I. Fundamental Structure of Bioindustry in Korea

Driving System




Biotechnology
-
related

Research

Institutes





Korea Tomorrow & Good Research Institute (KTGRI) (Tobacco & Ginseng)




Korea Food Research Institute (KFRI)




Korea Institute of Toxicology (KIT)




Korea Biotechnology Commercialization Center (KBCC)




Korea Institute of Energy Research (KIER)




Korea Ocean Research & Development Institute (KORDI)




Agency for Technology and Standards (ATS)




National Institute of Health (NIH)




National Institute of Environmental Research (NIER)




National Institute of Agricultural Science and Technology (NIAST)




Korea Forest Research Institute( KFRI)




National Veterinary Research and Quarantine Service (NVRQS)




National Fisheries Research and Development Institute (NFRDI)




National Institute of Scientific Investigation (NISI)


Government
-
donated Research Institutes


National and Public Research Institutes



Research

Institutes

I. Fundamental Structure of Bioindustry in Korea

Driving System





Korean Collection for Type Cultures(KCTC)




Korean Culture Center of Microorganisms(KCCM)




Korean Cell Line Research Foundation


Microorganism Depository Organizations




Asan Institute for Life Science




Samsumg Bioscience Research Institute


Private Research Institutes




Korea Institute of Science and Technology Information(KISTI)




Agriculture and Life Science Research Center, Seoul National University




Biological Research Information Center(BRIC), Pohang University


Research Institutes on Bioinformatics

I. Fundamental Structure of Bioindustry in Korea

Driving System




Others



Research

Institutes



Types of Companies




2002




No
.

of

Companies

:

621



Types of Companies

No. of Companies

Companies focusing on only R&D


148

Companies working on both R&D and Sales of Domestic Bio
-
products


345

Companies Selling the Imported Bio
-
products only


63

Companies Selling both the Domestic and Imported Bio
-
products


65

Types of BT Companies in 2002




2003




No
.

of

Companies

in

Bioindustry

:

About

650

Category of Companies

II. Current Status of Bioindustry in Korea



Company

Group

Large

Size

Group




Above 30 Companies




LGLS, CJ, Daesang, TS Corporation, etc.




Operating the fully Integrated System on R&D, Production, Marketing


Middle

Size

Group




Above 70 Companies




Dong
-
A Pharm., Chong Kun Dang, Green Cross, Daewoong, etc.




Focused on Developing Core Products

Small

Size &

Venture

Group




Above 500 Companies




Dong Kook Pharm., Bioneer, Macrogen, KoBioTech, etc.




Focused on the Niche Fields of R&D, Production & Marketing

II. Current Status of Bioindustry in Korea


Category of Companies

Manpower of Companies




2002




Total

:

8
,
707




R&D

Area

:

5
,
082

(
58
%
)




Manufacturing

Area

:

3
,
625

(
42
%
)




2003 : About 10,000

Manpower of Bioindustry in 2002

II. Current Status of Bioindustry in Korea

Ph.D.

M.S.

B.S.

Technician

Total

R&D


994

2,429

1,206


453

5,082

Manufacturin
g


19


344

1,088

2,174

3,625

Total

1,013

2,773

2,294

2,627

8,707


Source : Bioindustry Association of Korea(BAK), 2003




Human

Growth

Hormone




Vaccines

:

Hepatitis

B

Vaccine,

etc
.




α
-
Interferon,

γ
-
Interferon




Antibiotics

:

7
-
ACA,

etc
.




Diagnostic

Kits




Amino

Acids

:

Lysine,

etc
.




Oligosaccharides




Microbial

Agents




Insulin




Human

Growth

Hormone




α
-
Interferon,

β
-
Interferon




Vaccines

:

Influenza,

etc
.




Erythropoietin




Diagnostic

Kits




Equipments

:

Bioprocess,

etc
.




Industrial

Enzymes



Examples of Domestic Products



Examples of Imported Products

II. Current Status of Bioindustry in Korea

Example of Bio
-
products

Korean Pharmaceutical Products Waiting
for FDA Approval (IND, NDA) (March 2005)

-
Successful commercialization of 9 new pharmaceutical products developed by


Korean firms and approval of 6 new biotech pharmaceutical products

-
KFDA approved 25 applications in December 2005, and 37 applications previously


submitted are in the processing of preliminary consultation

Investment plan to Biotech


Company

Samsung

SK

LGLS

Daesang

Green Cross

ISU Chemical

DooSan

CJ

US$ 155 million by 2004

US$ 230 million by 2003

US$ 100 million by 2005

US$ 115 million by 2006

US$ 77 million by 2004

US$ 32 million in 2001, domestic and oversea investment

US$ 85 million to Biotech, 30 million to Biotech Ventures

US$ 230 million by 2004

Investment by Major Corporates

II. Current Status of Bioindustry in Korea



Transformation to BioSociety where the Bio
-
products and Services are


just on Your Hands




The Coming BioSociety after the Bio
-
revolution of 21C through the Fusion of


Biotechnology (BT) and Information Technology (IT)





Vision for BioSociety and Goal of Bioindustry



Vision for BioSociety



The Core Contributor in Korea Economy in 21C




The paradigm shift in economy from mass assembly industry to knowledge based industry




Impact of Bioindustry in 21C

III. New Breakthroughs of Bioindustry in Korea

Remaking the World

Transforming Ourselves

From Alchemy to Algeny

III. New Breakthroughs of Bioindustry in Korea


Vision for BioSociety and Goal of Bioindustry



Settlement as Growth Engine Industry for Next generation


-

Industrialization as the main force in Post
-
IT era



Commercialization of Export
-
driven Bio
-
products


-

Marketing of New Bio
-
products in advanced countries


-

Globalization of Korean traditional Bio
-
products



To achieve the Goal

Export : US$ 0.7 billion(2002)


US$ 10 billion(2012)


Targeting 10% of share in Global market



Intensive Promotion of Bioindustry as a National Strategic Industry



Active Lead toward Development of Bioindustry


Basic Direction of Bioindustry Policy

Creation of BioSociety for the 21
st

Century

Healthy

BioSociety

Wealthy

BioSociety

Clean

BioSociety

III. New Breakthroughs of Bioindustry in Korea

Growth of Bioindustry


To Strengthen Competitiveness on Bioindustry

III. New Breakthroughs of Bioindustry in Korea



Development of Core Technology


-

Technology for Mid
-
term & Next generation



Growth Engine Industry for Next generation


-

New Bio
-
drug / Artificial Organ, Bio
-
chip



Biostar Project


-

Innovative Biotechnology & Bio
-
product



䕳瑡Eli獨浥m琠o映Bio
-
produ捴cM慮u晡捴cring


-

In瑥tn慴aonal 慵瑨oriz慴ion o映䝌P 卹獴敭


-

䕳瑡Eli獨浥mt o映䝃P 獹獴敭s景r Fu据瑩on慬 A捴cv攠Co浰ound


-

Expansion of cGMP and Improvement of Management



Implementation of LMOs (or GMOs)


-

Biosafety Information Center


-

Foundation of Bio
-
hazard Evaluation Center

Expansion of

Industrialization

Infrastructure

Development of


Core Technology

& Bio
-
product


To Strengthen Competitiveness on Bioindustry

III. New Breakthroughs of Bioindustry in Korea




A捴cv慴aon o映Bio捬u獴敲


-

Con獴su捴con o映Kor敡eBio
-
桵h


-

却S敮g瑨敮ing o映數e獴sng Bio捬u獴敲


-

偲o浯瑩on o映u獩ng Mi捲o
-
biochip produ捴con pl慴景rm


-

䕳瑡Eli獨浥n琠o映pl慴景r洠景r 獵ppor瑩ng Indu獴sializ慴ion o映


BIT 瑥捨nology



䕳瑡Eli獨浥m琠o映Inv敳瑭敮琠/ Con獵l瑩ng Co浰慮y


-

偡P瑩捩pa瑩on 晲o洠publi挠捯浰慮y, priv慴攠& 景r敩gn 捯浰慮i敳


-

卵ppor琠o映long
-
瑥t洠inv敳瑭敮t



Construction of Complex


-

Advanced Biopharmaceutical production complex


-

Bulk Vaccine production complex



Joint R&D with Foreign Countries



Training International Standard Specialist



Networking among Domestic & Foreign association, companies


and government


Strengthening

& Promoting

of Biocluster

Promoting

Global

Network

What We Focus On

III. New Breakthroughs of Bioindustry in Korea



Development of Therapeutic Protein by Animal Cell Culture



Development of Biomaterial by Intelligence
-
type Bioinformatics



Development of Gene Therapy for Incurable Diseases



Mass Production of Protein
-
DNA chip System



Development of High Value Added Protein



Growth Engine Project : New Bio
-
drug / Artificial Organ & Bio
-
chip



Mid
-
term & Next Generation Project

III. SWOT of the Korean Bioindustry



International Level of the IT technology




Enthusiasm to the Education



Strong Driving Policy of the Government

Strength



Narrow gap in the Potential of Korea with the Advanced Countries



Innumerable fields to be Investigated



Increase of the interests in the Bioindustry among Koreans

Opportunity



Inferior in the Technology competitiveness




Far behind level in the Industrial Infrastructures



Insufficient Investment

Weakness



Spread of the Anxiety on the Bio
-
products



Monopoly of the Patents and IPR by a limited no. of Countries



Speedy of the Technology development

Threat

Creation of BioSociety for the 21
st

Century

Healthy

BioSociety

Wealthy

BioSociety

Clean

BioSociety


Ready for BioSociety

Growth of Bioindustry

IV. Future of Korean Bioindustry

Intensive Promotion

of Bioindustry

as a National

Strategic Industry

Enhancement of

International Cooperation

with China, etc.

Active Lead

toward Development


& Enlargement

of Bioindustry

Thank You!

Appendix



Upstream Technology : Well Developed




Recombinant DNA Technology, Cell Fusion Technology,




Strong organic synthesis



Downstream Technology




Fermentation : Well Developed




Animal & Plant Cell Culture, Separation & Purification, etc. : Improving



Emerging Technology : Early Stage




Genomics, Proteomics, Bioinformatics, etc.



Use of Established Biotechnology




Improvement of level on Bioprocess Technology



Development of Post genomics
-
related New Technology



Industrialization of Improved and New Bio
-
products




Improved Bio
-
product




New Bio
-
product

Technology


Level

Trend of

Technology

Development

Trend of Technology Development

4
6
8
10
12
1998
1999
2000
2001
2002
2003
2004
2005
B US$
0.0
2.0
4.0
6.0
8.0
10.0
Growth
Rate %
Korean Pharmaceutical Manufacturers Association

Pharmaceutical Industry in Korea



Source: Total Market Data from IMS MAT 2005 4Q

Top 20 Manufacturers in Pharmaceutical Markets

Comparison Annual Sales of Korean
Pharmaceutical Companies to Global
Pharmaceutical Companies (2004
-
2005)

Pharma Executive, May 2005


Korea


(2005)


Dong Ah


Yuhan


Hanmi


Deawoong


Green Cross


(B U$)



0.53



0.39



0.37



0.34



0.34


Japan


(2004)


Tekada


Ezai


Yamanouchi


Otska


Fujisawa


(B U$)



8.3



5.0



3.7



3.7



3.2


Global


(2005)


Pfizer


J & J


GSK


S & A


Novartis


(B US)



51



50



39



34



32

Trade of Korean Pharmaceuticals

2000

-
922

574

1,496

2001

-
737

620

1,358

2002

-
1,414

678

2,093

2003

-
1,388

691

2,080

2004

-
1,446

772

2,219

2005

-
1,819

857

2,676

Revenue

Export

Import

(M US$)

1.

Strong Market Share by Global
Pharmaceutical Companies

2.

Large Proportion of Prescription Drugs
(80%)

3.

Weak Global Competitiveness

4.

Pressure by Free
-
Trade Agreement

5.

Relatively Weak Regulatory Protocols

Trends in Pharmaceutical Industry

in Korea