Regulation-free Zone for Korean Biotech

The South Korean Ministry of Small and Medium Enterprises and Startups has created a “Regulation-Free Special Zone” in Gyeongsangbuk-do province for cultivated food and other biotech companies. The lack of red tape is intended to foster faster innovation allowing, for example, companies to legitimately procure a wide range of animal cells from biopsies and same-day slaughtered tissues to create cultured meat. Outside the zone, the framework established by the Korean Government earlier this year requires safety verification data for cells that are derived from livestock, including the country of origin, gender, age, and a slaughter inspection certificate, and it has been estimated that the entire regulatory process would take up to 270 working days and cost KRW 45 million (US $33,100).

The inauguration of the Regulation-Free Special Zone includes KRW 19.9 billion (US $14 million) in investment and several early-stage companies including Tissen Bio Farm, Lartbio, Danagreen, Seawith, SSBIO Pharm, and K-Bio CMO Center have announced they will participate.

The Korean government started setting up regulation-free special zones in 2019; there are zones for companies working on blockchain technologies, self-driving vehicles, next-generation battery recycling, electric mobility devices (electric kickboards, bicycles, etc.) and smart safety control (wireless technologies). The cultivated meat regulation-free special zone, the latest addition to this program, will exist for five years. By this time, the government expects that regulation for this industry will be more fully developed and the companies will be able to meet the requirements to continue their work without a long delay.