Chief among the next-generation growth drivers will be biopharmaceutical manufacturing, bioenergy, new biomaterials development and digital bioenergy ecosystem establishment.
Korea will seek to achieve bio-related economic production of 100 trillion won ($79 billion) and increase biopharmaceutical exports to $50 billion by 2030, the industry ministry said Wednesday.
Chief among the next-generation growth drivers will be biopharmaceutical manufacturing, bioenergy, new biomaterials development and digital bioenergy ecosystem establishment.
These research-intensive and long-term investment-oriented areas are increasingly prioritized by Korea’s advanced peers, as part of collective efforts to identify a breakthrough to tackle years of low growth and climate change.
The government will establish a Korean version of BioMADE, to strengthen the competitiveness of bio-manufacturing and manage infrastructure investment risks.
BioMADE is short for Bio Industrial Manufacturing & Design Ecosystem set up by the U.S. with a mission to “enable domestic bio-industrial manufacturing at all scales, develop technologies to enhance U.S. bio-industrial competitiveness,” according to market watchers.
The Ministry of Trade, Industry and Energy unveiled a set of comprehensive measures whereby the government will provide policy assistance to generate a private investment of 15 trillion won and produce 200,000 tons of locally manufactured bio-products. Energy sourcing laws will be tightened to mandate the use of hydrogen biodiesel to up to 8 percent, up from 5 percent.
The ministry said private investment will be fostered for accelerated local sourcing and production of raw materials and end products.
The definition of national strategic technologies will be expanded to include biopharmaceuticals, in a measure to grant tax credits for corporate investments.
Previously, only vaccine technologies were eligible for the tax benefit.
Biopharmaceutical manufacturing infrastructure will be fortified, mostly by providing electricity, land and water needed to operate production facilities.
The rate for localization of raw materials in turn will be increased to 15 percent by 2030, up from 5 percent.
The government will simplify the certification process and ease related expiration rules to foster biodegradable industry players.
The imports of 50,000 tons of bio naphtha, a flammable liquid hydrocarbon mixture, will be gradually replaced with 200,000 tons of locally produced materials by 2030.
The government will revise rules to allow refiners to manufacture bioproducts. A public-private body will be launched to develop and commercialize biofuels consumed by aircraft and vessels.
“I hope the latest measures translate into efforts to elevate the industry to a strategic growth driver of the economy,” Minister of Trade, Industry and Energy Lee Chang-yang said.
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This article was originally published on The Korea Times