Incheon's biotech industry surges as Songdo eyes global bio-innovation hub status

Incheon's biotech industry has more than doubled in both production and exports over the past four years, cementing the city's position as the country's leading hub for the sector.

Samsung Biologics' 7 trillion won ($4.59 billion) investment and the development of the K-Bio Lab Hub are converging to brighten prospects for Songdo's transformation from a production base into a global bio-innovation city.

According to an analysis of Bank of Korea Incheon branch data released Thursday by National Assembly lawmaker Jeong Il-young, Incheon accounted for 61.8 percent of national biopharmaceutical production and 78.9 percent of exports in 2024.

Production grew 118.9 percent compared with 2020, while exports rose 135.2 percent over the same period — the highest growth rate in the country.

Investment also expanded sharply. Total investment climbed from 431.3 billion won in 2020 to 2.89 trillion won in 2024, with capital expenditure rising more than 15-fold.

R&D investment, however, grew by only 39.6 percent — far behind the pace of facility expansion, pointing to a relative weakness in the region's technology innovation base.

The industry's structure also skews heavily toward production. Only 34 companies — 2.5 percent of all pharmaceutical and biotech firms nationwide — are based in Incheon, yet they account for more than 60 percent of national output.

Average production per company in Incheon is about 24 times the national average.

Analysts say building a sustainable industry ecosystem will require moving beyond the large-conglomerate-led production model to foster biotech ventures and small and medium-sized enterprises, while also strengthening clinical trial and R&D capabilities.

The biotech sector has also become a major driver of the local economy. Value added by Incheon's pharmaceutical and biotech industry more than doubled, rising from 2.5 trillion won in 2020 to 5.4 trillion won in 2024.

The sector's share of Incheon's gross regional domestic product expanded from 2.6 percent to 4.3 percent over the same period.

Last year, the biotech industry accounted for 12.9 percent of Incheon's GRDP growth and 18.9 percent of its employment gains, underscoring its role as a core engine of the regional economy.

"Samsung Biologics' 7 trillion won investment, the designation of a biotech special zone, and the K-Bio Lab Hub development are not separate projects — they are critical pillars that together can complete a single bio-innovation ecosystem," Jeong said. "The government must support not only the expansion of production facilities but also R&D, clinical trials, the training of specialized talent, and the nurturing of biotech ventures, all at the level of national strategy."

Jeong added that he would continue to back relevant legislation, regulatory reform and budget support in the National Assembly "so that Songdo can grow beyond the world's largest biopharmaceutical production base into a globally recognized bio-innovation city."