South Korea Grows Stem Cell Industry With US$90 Million Investment

South Korea’s President Lee Myung-bak has promised to invest 100 billion won (US$90 million) into stem cell research next year, in order to revitalise an industry that was severely affected after a cloning scandal nearly five years ago.

During his biweekly radio address on Monday morning, President Lee told the public that the government was ready to develop an industry that is seen to be a “new growth engine” for the country’s economy.

South Korea’s President Lee Myung-bak has promised to invest 100 billion won (US$90 million) into stem cell research next year, in order to revitalise an industry that was severely affected after a cloning scandal nearly five years ago.

During his biweekly radio address on Monday morning, President Lee told the public that the government was ready to develop an industry that is seen to be a “new growth engine” for the country’s economy.

The South Korean president vowed to restore the nation’s status as a leader in stem cell research; the industry’s reputation was compromised when prominent scientist Hwang Woo-suk was discovered to have fabricated his research back in 2005.

[quote]”Just a decade ago, Korea took the lead in stem cell research in the world along with the United States,” said Lee. “Unfortunately, there was a disappointing incident, which caused inevitable damage to the entire stem-cell research community in Korea.”[/quote]

In the aftermath of the scandal, the South Korean stem cell research industry went into deep freeze, allowing other countries such as the United States, Japan, Britain and China to leapfrog the nation in its development of the field.

[quote]”While we were faltering in our quest for stem cell research, other nations streamlined their regulations and aggressively expanded their investments in research,” Lee said, adding that the government would step up industry regulations to avoid a repeat scenario from 2005.[/quote]

The South Korean government wants to establish a system compatible with international standards that would facilitate clinical and licensing procedures and rectify policies that impede commercialization of stem cell-related research developments.

In addition, the government will also create a national stem cell bank for use to produce, preserve and supply stem cells to various researchers in the country on a stable basis, said Lee.

Stem cell research is said to be an extremely rewarding industry both clinically and in business terms. In July, the Korean Food and Drug Administration approved stem cell medication in the form of a treatment for heart attack victims for the world’s first clinical use.

President Lee added, “this field is new and offers infinite room for advancement, and how well we manage at this initial stage will make an enormous difference down the road. The country should now set its eyes on emerging as a stem cell powerhouse.”

According to Bloomberg, shares in South Korean bio- medicine manufacturer RNL Bio Co. jumped as much as 12.3 percent in Seoul trading in the wake of President Lee’s announcement. RNL traded 11 percent higher at 7,820 won as of 9:25 a.m. on the Korea Exchange, while the benchmark Kospi index dropped 0.2 percent.