[Daedeok Net Interview] Changyong Moon, Head of the Science and Industry Bureau of Daejeon Metropolitan City

The presence of biotech clusters has been recognized as one of the prerequisites for the development of the bio healthcare industry. The major biotech clusters in South Korea are located in Osong, Pangyo, Songdo and Daedeok. 

Among them, Daedeok, with its research complex established in 1973 and the designation in 2005 of its Special R&D Zone, has grown into one of the most robust R&D clusters in the nation. With biotech as one of the specialized industries in the Daedeok Special R&D Zone, Daedeok is helping to drive the growth and development of the Korean biotech industry with R&D and venture startups.

In particular, around 2000, a group of researchers from the LG Life Science Lab left the company and created their own businesses, contributing to the creation of a private-led cluster. Over the past two decades, among other things, the cluster has been home to 15 companies listed on KOSDAQ and five listed on KONEX, and some of the companies in the cluster have gained approval from the U.S. FDA.  

Substantial investment is finding its way to the cluster. As of 2018, biotech firms in Daejeon had secured investment in the amount of of 244.4 billion KRW among a nationwide total of 841.7 billion won in venture capital, gaining it the spotlight as a sought-after destination for biotech investment. 

With this in mind, Changyong Moon, the head of Daejeon Metropolitan City’s Science and Industry Bureau, was asked to talk about the charms of Daedeok as a biotech cluster and its vision regarding the future. 

◆ "Technology-push" in Daedeok Innopolis, the district’s research complex

Emphasizing easy research, Changyong Moon, the head of Daejeon Metropolitan City’s Science and Industry Bureau said he would strengthen policies and systems to support the bio industry in Daejeon.<Picture=HelloDD>
Emphasizing easy research, Changyong Moon, the head of Daejeon Metropolitan City’s Science and Industry Bureau said he would strengthen policies and systems to support the bio industry in Daejeon.<Picture=HelloDD>
"Daedeok is home to many state-funded research institutes, enterprise laboratories and R&D-based firms. This is one of the region’s strengths because such diverse resources enable highly connected and effective research activities."

Mr. Moon described the bio healthcare industry as a "Technology Push." The bio healthcare industry is one that requires effective research due to the long lead time and enormous research expenses involved. In this sense, it most effective to pursue dedicated research focused on the key proprietary technologies required for each sector and stage of development.  

The advantage generated by this kind of focused dedicated research has facilitated the formation of numerous biotech start-ups. Mr. Moon stated that "Daejeon has an enormous potential for start-ups, as the locale which has ranked second over the past five years in the number of small and medium-sized biotech start-ups established" and that "the presence of enterprises with specialized technologies such as new drug candidates or diagnostic devices is conducive to creating an ecosystem supportive to start-ups." 

Daedeok’s private-led network is also one of its unique charms. As Mr. Moon elaborated, "The success of the researchers who left the LG Life Science Lab has opened up opportunities for latecomers to create their own startups, and through the formation of their own networks, such as the Bio Healthcare Association, they have supported and cooperated with each other in developing a specialized local industry." 

◆ Creating a sustainable ecosystem for the biotech industry

"As a local government, we should analyze the elements required to create an environment where businesses like these can work in tandem with each other under a robust industrial ecosystem constructed from the region’s R&D capability, expertise, infrastructure, funding, supportive projects, networks and legal system. Also, we should ensure that our policies address areas that need improvement and do what is needed."

He also emphasized the role of a local government in creating a sustainable ecosystem where technologies, start-ups and growth are all connected in a supportive circle.

To back this up, Daejeon City has been developing effective support policies.  

First of all, the city supports the establishment of an infrastructure to nurture companies with new technologies in this era of the fourth industrial revolution. In the three key sectors of genetic medicine, VR-based medical equipment and ICT-converged in vitro diagnosis devices, Daejeon has assisted six projects with a total of 74.1 billion KRW in funding. These projects included ▲implementation of technology based on smart gene medicine, ▲establishment of a gene analysis system, ▲creation of a platform for module-type nano-bio chips. ▲establishment of a platform for the sophistication of biotech commercial technologies, ▲VR-based smart healthcare and ▲advancement of in-vitro diagnosis devices based on ICT convergence. 

There are also collaborative projects based on cooperation among research institutes, hospitals and companies. Funding in the amount of 7.3 billion KRW and 6.1 billion KRW will be disbursed through 2022 and 2021 respectively to support projects such as ▲the operation of the Center for Medical Device Research and Evaluation Support and ▲innovative joint research among doctors and scientists. All of these projects are designed to connect concrete ideas and needs from hospitals all the way through research institutes to companies, giving rise to R&D and commercial production.   

In addition, the city also implements support policies tailored to demands regarding support for R&D, prototyping, marketing and publication of newsletters, to help companies to develop innovative proprietary technologies and solve technological difficulties. 

Mr. Moon mentioned that "although regulations have been eased to some degree, there are still some obstacles to product development and penetration into foreign markets" and that "we will work to alleviate the difficulties companies face by identifying problems related to the biotech industry and establishing a task force to address them."

◆ Emulating Boston··· Korean Lab Central to take its first steps

By comparing and analyzing the current status of major global bioclusters including the Boston Cluster, the company is creating a model of Daedeok Bay.<Picture=HelloDD>
By comparing and analyzing the current status of major global bioclusters including the Boston Cluster, the company is creating a model of Daedeok Bay.<Picture=HelloDD>
"Boston’s biotech cluster is a model for the biotech industry worldwide," he continued. "Other major regional biotech clusters in Korea have attempted to become just like Boston, but I believe that Daejeon is the city with most optimal conditions to become a second Boston."

Asked to describe what kind of biotech cluster Daedeok aims to become, he answered firmly with two words, "another Boston." He continued, "It is Daedeok’s goal to become like Boston, which is the world’s best and largest biotech cluster."

Of course, he did not mean that Daejeon would blindly copy Boston. "Since Daedeok and Boston share some key characteristics, Daedeok has the best shot at following in Boston’s footsteps. Once Daedeok finds its optimal synergy, it will develop into a biotech cluster on a global scale."

The city of Daejeon is in the process of comparing and analyzing the success factors of the Boston biotech cluster in relation to the status of the region. With projections and expectations regarding the next decade based on that analysis, the city plans to devise a "Master Plan for the Global Innovation of the Daejeon Biotech Industry" that will be able to drive the region toward innovative growth. 

He identified "open innovation" as one of the greatest of Boston’s advantages. it is "Lab Central" that has made such innovation possible. As an incubation center for global start-ups equipped with state-of-the-art biotech testing devices, Lab Central plays a key role in fostering biotech start-ups. Tenant companies have access to excellent testing devices and a network of effective connections to venture capital and global pharmaceutical firms, along with opportunities for cooperation with other start-ups and coordination with hospitals and clinical trial centers. 

Mr. Moon continued, "Currently, Bio Venture Town in Daejeon TechnoPark provides space and equipment to support and nurture start-ups, but our infrastructure is still insufficient to steadily meet all their demands," and emphasized that "We will establish Daedeok’s version of a Lab Central to serve as a platform providing valuable connections to all appropriate players." 

In addition, plans are being formulated for the development of a biotech cluster. It is projected that specialized biotech complexes will be established in the Daedong/Geumtan area as well as in the Sindong/Dungok district, where over 20 companies are scheduled to relocate, providing additional production facilities. 

Mr. Moon highlighted his resolution to foster the biotech industry by saying "The plan is to create a biotech cluster that will be sought after not only by potential biotech start-ups but also global pharmaceutical firms. I will make every possible effort to enhance the industrial competitive edge of the region and the nation, with the aim of making beneficial bio healthcare technologies and products available to as many people as possible."

저작권자 © 헬로디디 무단전재 및 재배포 금지