Korea to offer tax benefits to biopharma industry, open public health data

The Korea Times

The Korea Times

National

Sat, September 30, 2023 | 08:38

Politics

Korea to offer tax benefits to biopharma industry, open public health data

Posted : 2023-06-01 17:01

Updated : 2023-06-02 15:52

President Yoon Suk Yeol speaks during an export strategy meeting held in Gangseo District, Seoul, Thursday. Yonhap

By Lee Hyo-jin

The government will offer tax incentives for the biopharma sector and increase access to public health data, as a part of its efforts to nurture a biohealth cluster modeled after the "Boston Cluster" in the U.S., according to the presidential office, Thursday.

During an export strategy meeting held in Magok, Gangseo District of Seoul, Thursday, President Yoon Suk Yeol unveiled a plan to foster innovative firms in high-end industries, including the establishment of a biohealth cluster that will bring together local bio-pharmaceutical firms, universities, think tanks and hospitals.

A cluster refers to an industrial complex in which companies, research institutes and think tanks related to a specific industry are gathered in one place to generate synergy. Korea has some 1,800 clusters of 70 different kinds that are currently in operation or being developed.

However, many of the existing clusters have struggled to grow internationally due to a lack of networking opportunities between private firms and research centers, strict regulatory measures, as well as a lack of young talent willing to work in clusters located in rural areas.

To this end, the government is preparing to implement a set of initiatives to nurture clusters related to high-end industries such as biohealth, semiconductors and secondary batteries ― three industries that are considered the country's future growth engine.

The presidential office views the newly announced biohealth cluster to be a Korean version of the Boston Cluster in the U.S., which is regarded as the center of the global biotech industry, as a number of top pharmaceutical and medical device companies, as well as world-renowned universities such as Harvard and Massachusetts Institute of Technology (MIT) are located there.

"The Boston Cluster was formed not just based on MIT, but also based on a fair market and compensation system, which brought together the best talent in the spheres of engineering, medicine, law and finance," Yoon said.

"It is not just a territorial gathering of research centers, universities and investment organizations, but a close connection of such facilities which leads to the development of innovative technology and creation of new values."

It was the fifth meeting presided by Yoon to boost the nation's export competitiveness, attended by related ministers including Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, Minister of Health and Welfare Cho Kyu-hong and Minister of Science and ICT Lee Jong-ho.

During the meeting, the government announced that it will designate certain biopharma technology as the nation's strategic industries, thereby offering a tax incentive rate of up to 35 percent on facility investment.

It will also lift regulations barring cluster projects, while offering legal and accounting services to businesses and expanding shared facilities within the clusters for ventures and start-up companies.

The government will also push for the disclosure of public biohealth data with an aim to foster the digital healthcare sector. Beginning in the latter half of this year, the health ministry will launch a decade-long plan to collect the clinical, DNA and personal data of a total of one million individuals by 2032.

lhj@koreatimes.co.kr