Private S.Korea firms plan $5.4 bln investment to create vaccine hub

Celltrion

02/11/2021 09:23

By Sangmi Cha
    SEOUL, Nov 2 (Reuters) - South Korea's private sector plans
to invest 6.3 trillion won ($5.4 billion) in vaccine production
and distribution by 2024, as the country seeks to become a
global vaccine powerhouse, Prime Minister Kim Boo-kyum said on
Tuesday.
    South Korea already has deals to produce three coronavirus
vaccines developed by AstraZeneca https://www.reuters.com/article/health-coronavirus-southkorea-skbioscien-idUSL3N2N40W5
  AZN.L /Oxford University, Novavax  NVAX.O , and Russia https://www.reuters.com/business/healthcare-pharmaceuticals/skoreas-gl-rapha-certified-produce-sputnik-covid-19-vaccines-2021-10-26.
 It also has a vaccine bottling and packaging agreement with
Moderna https://www.reuters.com/article/health-coronavirus-southkorea-moderna-idUSL4N2RM0VP
  MRNA.O .
    The investment plan includes 4.24 trillion won spending by
Samsung BioLogics  207940.KS  and 1.5 trillion won by drugmaker
Celltrion  068270.KS , the government data showed.
    Kim said the government had selected 14 companies in the
vaccine supply chain eligible for 18 billion won of state
financial support, as the government develops the industry to
become a major pillar.
    The selected companies include Hanmi Pharmaceuticals
 128940.KS , ST Pharm  237690.KQ  and Cellid  299660.KQ .
    The move comes after President Moon Jae-in in May unveiled
his plan for a global vaccine production hub https://www.reuters.com/world/asia-pacific/skoreas-covid-19-vaccine-shortages-overshadow-moon-biden-summit-2021-05-12
 after agreeing with U.S. President Joe Biden on a partnership https://www.reuters.com/world/asia-pacific/south-koreas-moon-be-second-leader-second-asian-welcomed-by-biden-2021-05-21
 that would combine U.S. expertise and South Korean production
capacity.
    In August, Moon said he would designate COVID-19 vaccines as
one of three national strategic technologies, along with
semiconductors and batteries, aiming to ramp up investment, give
tax breaks and offer other incentives to help firms localise
materials, parts and equipment.  urn:newsml:reuters.com:*:nL1N2PC0CR
($1 = 1,174.6700 won)

 (Reporting by Sangmi Cha; Editing by Nick Macfie)
 ((sangmi.cha@thomsonreuters.com;))