보건복지부 영문홈페이지

New Challenge to Health Industry, Nagoya Protocol

- Industry, Government and Academia gathered together to have a presentation on direction in response to the Nagoya Protocol and a time of discussion

 

Ministry of Health and Welfare (Minister Rim Chae Min) held a public hearing at Coex Conference Hall in Samsung-dong, Seoul at 14:00 on 13 Jan. (Fri.) in order to enhance the understanding of it by the health industry and seek responsive measures regarding the Nagoya Protocol on Access to Genetic Resources and Benefit-sharing (hereinafter, referred to as the Nagoya Protocol).

 

The event which was held under the theme of the “Impact of the Nagoya Protocol on the Health Industry and Preparation of Responsive Measures” was attended by around 200 participants including some distinguished guests such as chief official from the Division of International Cooperation, Ministry of Health and Welfare, President of Korea Health Industry Development Institute and those involved in pharmaceutical, cosmetic, health food and oriental medicine industries.   

 

According to the Protocol on Access to Genetic Resources and Benefit-sharing which was adopted in Nagoya, Japan in Oct. 2010, monetary and non-monetary benefits shall be shared when products that utilize genetic resources from other countries.   

 

As the health industry such as pharmaceutical, cosmetic and health food industries heavily rely on genetic resources from foreign countries, the industry will have to bear an extra burden when the Protocol comes into force.

 

- 67% of local pharmaceutical, cosmetic and food industries turn out to utilize overseas biological resources when producing their products. Because the bio industry using such genetic resources is on the rise now, demand for overseas genetic resources is expected to increase steadily.  

 

Category	Major Details	→	Impact on the Industry
(Current Status of the Industry)   Ÿ Significant part of materials for pharmaceutical, cosmetic and food products is from botanical resources	- More than 60% of domestic pharmaceutical, cosmetic and food businesses are using overseas resources when producing products. - In the case of L cosmetic company, 40% of the entire materials are botanical resources (300 types of plants)		Threat: Due to limit in access to genetic resources, R&D might be discouraged and material cost will rise.   Opportunity: Differentiation through securing indigenous genetic resources in advance and facilitation of development and exploration of alternative materials
(Obligation under  the Protocol)   ŸMonetary and non-monetary benefit sharing for use of foreign plants	- Company that produces and sells products utilizing overseas resources shall give back some of the benefits to the country that holds the ownership of the concerned resources ☞ Price increase such as payment of royalty or limit on use of certain resources

Also, the protocol parties are obligated to share benefits when using traditional knowledge concerning genetic resources and thus, it is expected that the oriental medicine industry will be also greatly impacted by it.   

 

- Given this, the pharmaceutical, cosmetic, food and oriental medicine businesses have to take swift action to prepare for the protocol.   

 

Against this backdrop, Ministry of Health and Welfare prepared an opportunity to enhance the understanding of the protocol by the industries and renew their interest in the protocol through the presentation on the status of preparation for the protocol by the pharmaceutical, cosmetic, health food and oriental medicine industries and a time of discussion among the industry, the government and the academia.

 

At the Session 1, Sohn, Mi Won, Director of Dong A Pharmaceutical Co. Ltd., gave a presentation on the impact of the Nagoya Protocol on the national substance drug industry and Kang, Byung Young, director of Amore Pacific, also made a presentation on the impact of the Protocol on the cosmetic industry and made a proposal on the action by the industry in preparation for the Nagoya Protocol. 

 

Min, Bok Gi, Director of Rex Gene Biotech Co. Ltd., gave a presentation on the expected benefits and damages for the businesses that supply materials for health functional food products after the protocol takes effect and Jeong, Chae Bin, Director of the Association of Korean Oriental Medicine, explained about the direction in responsive action by the oriental medicine industry utilizing traditional knowledge regarding genetic resources.   

 

Discussion among the industry, the government and the academic was held at Session 2.  Park, Won Seok, Professor of Chung Ang University, Graduate School of Law, spoke about the retroactive application of the Nagoya Protocol and Cho, Hun Jeh, Korea Drug Research Association mentioned about the problems that the national substance drug industry is facing and difficulty in new drug research and development, etc.

 

Han, Chang Gyun, Director of National Substance Research Institute, Ahn Gook emphasized that alternative resource research and development shall be encouraged to minimize the protocol-related damages. Chang, Ho Min, President of Korea Biosafety Clearing House gave advice on effective realignment of related laws as a user of genetic resources.

 

Ministry of Health and Welfare said that as the contents of the protocol and expected impact were introduced through this hearing, the interest by the industry was successfully induced while there was lack of understanding of the Nagoya Protocol by the health industry. 

 
In addition, by presenting cases from domestic and overseas companies that are already preparing for the protocol at the hearing, an opportunity for the businesses to effectively respond to the protocol was provided

Ministry of Health and Welfare said that it will collect opinions from the industries by receiving on-site remarks and comments from those who attended the event and it will reflect the opinions in tasks to be done by the Nagoya Protocol Working Group that is operated within Ministry of Health and Welfare.