Facility to manufacture biopharmaceutical raw materials for domestic supply and regional exports

Park Jeong-seong, chief trade negotiator at the Ministry of Trade, Industry and Energy [Yonhap]
Park Jeong-seong, chief trade negotiator at the Ministry of Trade, Industry and Energy [Yonhap]

German life science and chemicals company Merck has invested 450 billion won to establish an Asia-Pacific production hub for biopharmaceutical raw materials in Daejeon, with plans to supply domestic manufacturers and export across the region.

The Ministry of Trade, Industry and Energy said Merck held the opening ceremony for its Merck Asia-Pacific Bioprocessing Production Center on Thursday at the Dungok district of the International Science Business Belt in Daejeon.

The new center is the largest investment Merck has made in the life sciences sector across the Asia-Pacific region. The total investment stands at 300 million euros ($334 million), equivalent to about 450 billion won. The facility will manufacture raw and subsidiary materials needed for biopharmaceutical production — including cell culture media and process liquids — for supply to domestic clients and export to Asia-Pacific markets. Merck plans to hire about 300 employees by 2028, contributing to the local economy.

The project stems from a three-way investment cooperation MOU signed in May 2023 among the Ministry of Trade, Industry and Energy, Daejeon city and Merck. The government provided close support from the earliest stages of site selection through permitting and regulatory hurdles, making it a successful foreign direct investment case.

The ministry said Merck decided to invest after weighing South Korea's growth potential in the biotech industry and its viability as a supply chain hub for the Asia-Pacific region.

Founded in 1668, Merck operates across life sciences, healthcare and electronics materials, and entered the South Korean market in 1989. The company currently employs more than 1,900 people in the country. Through its M Lab Collaboration Center and Life Science Operations headquarters, both in Songdo, Incheon, Merck has provided process development and technology support to domestic biotech firms and carried out small-scale production of raw materials.

About 250 people attended the opening ceremony, including Park Jeong-seong, chief trade negotiator at the Ministry of Trade, Industry and Energy; Daejeon Mayor Heo Tae-jeong; Johannes Baillou, chairman of Merck's executive board; Jean-Charles Wirth, CEO of Merck Life Science; and Lee Dong-gwan, CEO of Merck Korea.

"This is a meaningful investment that further broadens the horizon of Korea-Germany economic cooperation," Park said. "We hope Merck will continue to advance its biotech business in Korea through this bioprocessing production center and create new growth opportunities together with Korea going forward."


oskymoon@heraldcorp.com