Celltrion Chairman Seo Jung-jin: "KRW 4 trillion for facilities, KRW 1 trillion for startups, and KRW 1 trillion for R&D investment"

[by Lee, Young Sung] On November 16, at the “Korea-U.S. Tariff Negotiation Follow-up Public-Private Joint Meeting” held at the Presidential Office in Yongsan, Celltrion Group Chairman Seo Jung-jin presented the group's mid- to long-term strategy. This included plans for facility investments and expanding its startup investment fund in Korea.

Celltrion announced plans to invest a total of KRW 4 trillion (approximately USD 2.7 billion) in domestic facilities over the next three years. Seo also outlined initiatives to further increase the domestic production rate of biomaterials, components, and equipment, areas traditionally dependent on imports, and to double the company’s startup investment fund to KRW 1 trillion. Additionally, the company aims to raise its annual R&D spending to more than KRW 1 trillion, aligning with the investment levels of global pharmaceutical companies. He further emphasized the strategic importance of developing a global telemedicine business built on an AI-driven platform, supported through investment in the United States.

Seo noted that preparations for the company’s U.S. business initiatives, which are currently in progress, are moving forward smoothly.

"As the U.S. government requests, products intended for use in the United States will be manufactured and sold within the U.S.," Seo stated. "To this end, we have acquired a U.S. production facility valued at approximately KRW 2 trillion, and we will complete the execution of the necessary funds by the end of the year to ensure smooth progress."

Celltrion recently completed the merger review process with the U.S. Federal Trade Commission's Premerger Notification Office (PNO) concerning its acquisition of Eli Lilly's manufacturing facility in Branchburg, New Jersey.

◇"KRW 4 trillion facility investments planned in Songdo, Ochang, and Yesan over three years...Ensuring balanced domestic investment"

Seo also presented detailed investment plans in Korea. "We will invest a total of KRW 4 trillion in facilities over the next three years across three locations: Songdo in Incheon, Ochang in North Chungcheong Province, and Yesan in South Chungcheong Province. These investments will be made to ensure balanced development in these regions," Seo remarked.

However, he also acknowledged the practical challenges of securing local talent. "Currently in Songdo alone, we have 4,000 employees, of which 270 are PhDs. The biggest difficulty for regional areas is that skilled professionals are often reluctant to relocate or work outside major urban centers," Seo pointed out. "We will collaborate closely with local governments to address this issue and create exemplary models that support the President’s goals of strengthening domestic investment and promoting balanced regional development," he further emphasized.

◇"Startup fund expanded to KRW 1 trillion...R&D investments also exceeding KRW 1 trillion"

Seo also reiterated his commitment to increasing the localization of biomaterials, components, and equipment. "The biopharmaceutical industry has long depended on imported raw materials, but we intend to substantially raise the domestic production rate," he said.

He further announced plans to double Celltrion Group’s existing KRW 500 billion (approximately USD 342.7 million) bio startup fund, expanding it to KRW 1 trillion.

He also outlined plans to expand R&D investment to levels comparable with those of leading global pharmaceutical companies.

"Until now, we have invested KRW 600 billion annually in R&D, and beginning next year, that amount will increase to around KRW 800 billion. By the end of the year, our R&D spending will surpass KRW 1 trillion, which is on par with top global pharmaceutical firms," Seo stated. "With Celltrion and Samsung taking the lead, I believe such efforts will elevate the overall stature of the domestic pharmaceutical industry," he added.

Seo further stressed the importance of Korea joining the ranks of countries that share clinical data internationally. "Korean pharmaceutical regulations must be aligned with global standards. The United States and Europe are entering the final stages of clinical data sharing, and if Korea participates as well, it will significantly reduce clinical trial costs for domestic companies," he noted.

◇"The Era of USD 20 billion U.S. investment... A prime opportunity for AI-driven global telemedicine"

Regarding the government's recent decision to cap annual U.S. investment at USD 20 billion, Seo highlighted this policy as a strategic opportunity for the healthcare sector.

Among the proposed initiatives, he highlighted the concept of ‘Global Telemedicine Based on an Artificial Intelligence (AI) Platform.’ He described its potential by stating, "This is effectively about establishing the world's largest hospital in Korea. If such a system were implemented in the United States, we could place the data center in Korea while setting up the headquarters in the U.S."

He specifically pointed out the absence of a comprehensive ‘health screening system’ in the United States and Europe, predicting that "in the AI ​​era, it will be possible to establish a self-screening protocol." Seo affirmed his commitment, stating, "We will do our utmost to support this initiative in collaboration with the government, contributing to the development of future industries for our country."

On the other hand, the meeting was hosted by the Office of the President and attended by the heads of Korea’s major conglomerates, including Celltrion Chairman Seo Jung-jin, Samsung Electronics Chairman Lee Jae-yong, Hyundai Motor Group Chairman Chung Eui-sun, SK Chairman Chey Tae-won, LG Chairman Koo Kwang-mo, and Hanwha Group Vice Chairman Yeo Seung-joo.