Biotechnology in the Republic of Korea

Summary

The strategy for the development of biotechnology involves a close partnership between the government and industry. South Korea does not have a strong R&D capability in biotechnology. The two most important actions of the South Korean government have been the creation of the Genetic Engineering Centre at the Korean Advanced Institute of Science and Technology (KAIST) and the organization of the Korean Genetic Engineering Research Association (KOGERA). The former acts as a centre for technology transfer, as well as a research institute, whereas the KOGERA is a mechanism for funding generic research, both in the universities and in industry.

South Korea has an important pharmaceutical market, but the industry is highly fragmented, with approximately 300 companies. Very few of these companies have the capability of conducting their own R&D or of developing their own products. The “chaebols” (i.e. industrial conglomerates) are large multinationals, with considerable financial resources and the capability of developing new technologies. They have little experience, however, in biotechnology-related industries. In order to circumvent the lack of both experienced researchers and of advanced biotechnology know-how, the Samsung Group and the Lucky-Goldstar Group (two large conglomerates) have established new biotechnology companies in the United States. These new enterprises conduct R&D for their parent companies and act as windows onto American biotechnology.