Investment Expansion, Private Capital
Essential for Promoting BT Industry

National Assembly Science, Technology, Information and Telecommunications Committee Chairman Rim calls for the issuance of funds and bonds

Capital inflow from the private sector together with the government's budgetary investments is needed in order to raise the standing of the domestic biotechnology industry to the level of advanced countries, a parliamentary policy report says.
Rim In-bae, chairman of the National Assembly Science, Technology, Information and Telecommunications Committee, suggested that besides the existing fund-raising schemes of stock investments, issuing biotechnology funds and bonds could be considered as feasible options to attract investments from the private sector. Chairman Lim discussed this and other options in a report titled "Policy Recommendations for Nourishing and Supporting Biotechnology."According to the report, The Korean government's investments in the biotechnology field are on the rise, but they are insufficient compared to advanced countries. The government's R&D budget for the biotechnology sector amounted to 673.6 billion won or 9.0 percent of the total budget during 2005.
The figure represents a 12.5 percent rise over the same period a year earlier, but is still insufficient, as the R&D outlay equaled just 2 percent of that of the U.S. National Institutes of Health and 13 percent of that of the Japanese government.
The report says, "Providing R&D outlays on par with the levels of advanced countries is almost out of the question, but the focus needs to be on reducing the gap."Given that the biotechnology industry is considered a key industrial field in determining whether each country could join the ranks of global economic powerhouses, it said, the government is required to raise research efficiency through massive investments.
The report said the government needs to have a strategy of "choice and concentration"in order to focus on some areas which will return bigger results with less money.
On top of a deficiency in the government'spresidential campaignrs is expected to play an portion of the investment, the stark reality in Korea is that the private sector is also providing insufficient funding. The government needs to introduce policies and systems to lure private investments into the biotechnology sector to help it maintain explosive growth, the report adds.
In an effort to diversify sources of investments from the private sector, it said, the government can consider the issuance of biotechnology funds and bonds. Rim also suggested that the government should ease restrictions for companies entering the industry.
In addition, the government should take steps to improve the unstable employment situation of the science and technology sector in order to recruit a gifted work force, provide financial support to high quality workers and nurture biotechnology management professionals responsible for commercializing the outcome of research.
It should simultaneously operate the so-called Patent Pool System designed to increase the competitive edge in the patent area as a legal regime for
inducing a return on investments, establishing a network within the biotechnology industry, facilitate the operation of technology exchange and revamp relevant laws to promote the commercialization of technology.
The report noted that it is essential to ensure ethical and fact-oriented research to promote the development of the biotechnology industry. To this end, it said, the scope of illegal research practices should be expanded while punishment of violators should be sterner. Steps such as a system for protecting inside informants and articles on the mandatory execution of education on research ethics should also be introduced.
Rim said, "The biotechnology industry will emerge as a key future industry that can tackle such problems as chronic diseases, energy and food issues facing human beings, making it an industry that will drive economic growth in the 21st century. If Korea builds a foundation for providing comprehensive support for the development of the biotechnology industry by
capitalizing on its own strong points, the nation could expect to join the ranks of 'G8 advanced countries in the biotechnology field as well as the IT industry." nw

The Report on Policy Recommendations for the Development of the BT Industry, written by Rim In-bae, chairman of the National Assembly Science, Technology, Information and Telecommunication Committee. (left photo) Rep. Rim.

Rim In-bae, chairman of the National Assembly Science, Technology, Information and Telecommunication Committee, is an active parliamentarian who is engaged in diverse activities, including those designed to promote the BT and IT industries.