South Korea Sets Sights on Bio Industry Leadership
Driven by advancements in artificial intelligence (AI) and extensive medical data resources, South Korea is taking decisive steps to establish itself as a major player in the burgeoning digital bio industry. The nation is focused on fostering a robust ecosystem that combines cutting-edge technology with a wealth of clinical data, with the goal of sparking innovation and driving economic growth.
Earlier this month, OpenAI, a leading U.S. tech company, announced a ‘NextGenAI’ consortium joining forces with 15 major universities and research institutions in the United States and Europe. OpenAI is providing $50 million in research funds and cloud resources. Harvard University Medical School, a participant in the alliance, has begun developing AI solutions to accelerate rare disease diagnosis and support medical staff decision-making using OpenAI’s GPT model.
This trend is mirrored in the business world as U.S.-based AI-driven precision medicine companies such as Tempus AI, following in the footsteps of genomic analysis firm Ambrigenetics are acquiring clinical data startups to fortify their positions. This wave of investment underscores the convergence of the medical field and clinical data, forming what some are calling the ‘digital bio big bang.’ Competition is intensifying for the development of new AI-driven pharmaceuticals harnessing the power of information technology (IT).
At the heart of this transformation lies data. The Mail Business Vision Korea project team, in collaboration with global consulting firm PwC and Strategy&, is readying an action plan to be presented at the 35th National Reporting Conference on March 19th. The core objective centers on establishing a government-led “bio-integrated exchange” as the initial step in facilitating industrial development, from data collection, to data utilization and integration.
South Korea is in a strong position, as its medical data is competitively strong as well. The country enjoys comprehensive national health insurance coverage. It holds high-quality national medical data from a population of 50 million people. Major hospitals have also taken the lead in digitalization, thereby creating a wealth of data in both the public and private sectors.
According to PwC and Strategy&’s assessment of the availability of medical data in major countries, South Korea (scoring 6.9 points) is ranked second in the OECD after Denmark (7.8 points). This ranking is far ahead of the United States (3.0 points), highlighting South Korea’s strong foundation in this field. However, the nation’s capacity to utilize digital health data currently lags behind the United States by about 20%.
A major hurdle lies in the absence of robust government support, with significant restrictions imposed on businesses leveraging medical data. There’s considerable legal ambiguity due to data being spread across various institutions and inconsistent interpretations of data use under evolving laws.
Professor Park Yoo-rang of Yonsei University Medical School, in a January 2025 report comparing genomic data system guidelines across nations, pointed out legal issues concerning South Korean bio data regulations. He said that inconsistencies between the Medical Law and the Personal Information Protection Act, “raise the issue of unclear priorities between medical data-related laws.”
The Vision Korea project team envisions the creation of the world’s first data market. It would allow suppliers and consumers to trade freely, mitigating the risks of data use. Business-to-business transactions are expected to foster the development of high-value industries like telemedicine and new AI-driven drug discovery.
An industry insider noted, “Korea’s clinical infrastructure is also one of the best on the global stage.” This would provide the environment needed “to bring the status of Singapore’s current Asian bio mecca.” PwC and Strategy& forecast that with increased data utilization, the nation could foster significant developments in new drugs. South Korea could also grow its “Big 5” large hospitals as medical commercialization hubs. As a result, the red bio industry could more than triple from 48 trillion won in 2024 to 139 trillion won by 2034. Furthermore, with government backing in the green and white bio sectors, the K-bio industry is projected to expand from 60 trillion won to 244 trillion won in the next decade.
The semiconductor sector accounted for 7.9% of South Korea’s gross domestic product (GDP) last year (the highest among manufacturing industries), while the bio sector only accounted for 2-3%. If the bio industry is fostered, K-bio is expected to account for 8.9% of the national economy in 2034, placing it among leading economic sectors alongside semiconductors (8.7%).
“Advanced bio-countries such as the U.S. and the U.K. have already laid the groundwork for the private sector to conduct bio business using data,” Kim Chang-rae, head of PwC and Strategy&, said. “As digital bio has become a trend, Korea also needs to set the stage for industrial growth by actively digging into this branch.”
[Reporter Ko Min-seo]
