Concerns are growing that the domestic pharmaceutical, bio, and healthcare industries in South Korea could shrink due to political and economic instability both domestically and abroad. It has been pointed out that in order to grow the healthcare industry, which is considered a future growth engine, it is necessary to innovate the complex domestic regulatory system and strengthen policy support.
Kang Dae-hee, president of the Telemedicine Society (professor at Seoul National University College of Medicine), and Lim Jong-yoon, director of Hanmi Science, co-chaired the fifth regular seminar of the Korea Future Medical Innovation Research Group at the Kensington Hotel in Yeouido, Seoul, on the afternoon of the 12th.
Hwang Man-soon, CEO of Korea Investment Partners, who delivered a presentation that day, noted, "The status of the pharmaceutical bio healthcare industry has become tough due to the won-dollar exchange rate, inflation, and intensified patent disputes," adding, "Concerns are affecting the investment market that the business environment for domestic bio corporations could deteriorate due to the United States' nationalism policies."
Hwang emphasized, "It is necessary to reform the regulatory system so that domestic corporations can maintain competitiveness and provide policy support to turn crises into opportunities."
Hwang, who graduated from Seoul National University College of Pharmacy, worked as a research scientist in new drug development at Yuhan Corporation, then moved to Korea Biotechnology Investment, a startup investment firm, in 2001, and joined Korea Investment Partners in 2009. He has been the CEO of Korea Investment Partners since 2021.
Korea Investment Partners manages total assets of 4.5 trillion won, operating around 60 funds. CEO Hwang has invested in over 230 domestic corporations and foreign bio companies, including LigaChem Biosciences, ABL Bio, Tiumbio, and Genome & Company.
Hwang stated, "With the inauguration of Donald Trump's second administration, the United States' nationalism is strengthening, and global hegemony is shifting toward the U.S.," adding, "It is an era where survival is impossible without aligning with the U.S."
He remarked, "One of the basic concepts when selecting investment items for our company is that if competitors are formidable, we do not invest in that field," explaining, "If there are strong competitors, the principle I always pursue is to align with them in any way possible."
This means that both corporations and investors must seek opportunities amid the crisis of U.S.-China conflict and U.S. nationalism policies.
The importance of policies that can turn crises into opportunities has also been emphasized. Hwang noted, "A single policy can change an entire industry," pointing to the localization policy for materials, parts, and equipment.
The conflict between South Korea and Japan, triggered by Japan's export restrictions on materials, parts, and equipment related to semiconductors and displays in 2019, served as a catalyst for promoting the localization policy for materials, parts, and equipment.
He emphasized, "At that time, we induced investments in the materials, parts, and equipment sectors, leading to an increase in listed companies and investments," stating that to nurture the domestic healthcare and bio industries, such policy support is necessary.
There have been observations that regulatory barriers are blocking growth opportunities in the healthcare industry.
Hwang mentioned, "Let me use Samsung as an example. Samsung Seoul Hospital has excellent medical professionals and a wealth of research and clinical data," noting, "Samsung has a semiconductor-specialized university and also manufactures semiconductors and smartphones, which has the potential to create great value by utilizing and combining these resources, but the reality is that domestic regulations prevent this."
He asserted that it is essential to boldly remove regulations that are obstructing innovation and growth opportunities, suggesting that a system reform allowing all actions except those explicitly prohibited, commonly known as the "negative" regulatory approach, is necessary for new industries like healthcare.
There are also concerns that the resumption of short selling next month could shock the bio sector. CEO Hwang warned, "Growth industries, which attract significant investment capital but are not yet generating profits, will be hit by short selling," stating, "Discussions on excluding such industries from short selling targets should also be necessary, considering their industrial characteristics."
The need to foster the digital healthcare industry, which combines healthcare and IT, has also been highlighted.
That day, Han Sung-jun, CEO of Cori Group (Chairman of the Hanmi Committee), also said, "As the cultivation of the artificial intelligence industry has become a global trend, the government needs a strategic approach to focus on digital healthcare and leap to become a global leader."
Han also emphasized that "the negative regulatory system will promote the growth of the digital healthcare industry," stating, "Bio is also a matter of national security and defense, and recognizing the importance of vaccine sovereignty through the COVID-19 pandemic, it is time to establish a swift and efficient 'Korean-style defense bio' system."
Kang Dae-hee, president of the Telemedicine Society, emphasized the importance of steadily supporting the elaboration of policies for fostering digital health and training physician scientists to achieve industrial outcomes.