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Korea Herald
29-04-2025
- Business
- Korea Herald
Biotech strategy forum charts path forward amid US policy shifts
US strategist Kurt Tong warns firms to prepare for US-led supply chain realignment Top business executives and industry experts convened Tuesday at the 2025 US Strategy Roundtable for Pharma and Biotech to assess Korea's biotech standing at a critical juncture of global restructuring led by the US and to share perspectives on navigating the challenges ahead. Aimed at advancing discussions on major shifts in the global biopharmaceutical industry, the one-day session -- held at the Korea Chamber of Commerce and Industry under the theme of securing biotech growth amid shifting policies and supply chain realignments -- was hosted by The Korea Herald, with sponsorship from One Law Partners and Korea Bio. 'The pharmaceutical and biotech industries are of immense importance because they deal with life itself,' said former Justice Minister Kang Kum-sil, now a partner at One Law Partners, in her welcoming remarks. "Politics and the economy are deeply intertwined, and political shifts can greatly impact markets. I'm grateful to have experts in US policy and Asia's economic landscape offering insights on how to navigate these challenges,' Kang added. Kim Young-sang, CEO of The Korea Herald, also delivered congratulatory remarks. 'With all of you in the pharmaceutical and biotech sectors, who are committed to safeguarding health, I truly believe that our society will continue to flourish," Kim said. 'A crisis is simply another name for opportunity, and I hope that today's event will be a beneficial opportunity for us to open new paths for our future." The forum featured a keynote presentation by Kurt Tong, managing partner at The Asia Group, a Washington-based strategic and investment advisory firm, who shed light on the evolving global biopharmaceutical supply chain. According to Tong, as the pandemic underscored the fragility of relying on foreign suppliers, particularly in sectors like medicines, the US has moved toward a more protectionist stance. "There's a desire to bring more pharmaceutical manufacturing and biologics back to the United States, reducing dependence on foreign production. It's not just about research and development, but also manufacturing -- and tariffs were the tool President Trump focused on to achieve that," he said. Although Tong mentioned that a potential 25 percent sectoral tariff on pharmaceuticals is a significant concern, there may be room for adjustments from the US. "This pharmaceutical charge can get lower or maybe even be postponed, as drug prices are a highly sensitive issue in the United States. The number one complaint of American citizens about medical care and pharmaceuticals is not the effectiveness nor the availability, but the price," he added. The second critical issue discussed was the growing national security concerns related to biotech, particularly with China's increasing influence in this sector. According to Tong, biotech is no longer just a commercial enterprise but "a matter of national security." The discussion highlighted initiatives like the US's Biosecure Act, designed to protect sensitive biotech research and development from potential foreign exploitation, a move that could accelerate the emergence of separate global bio supply chains, one centered around the United States and the other around China. As for Korea's position, Tong advised that Korean firms must engage in "careful maneuvering" between the US and China. 'Korean companies should conduct thorough research to understand the implications of the current landscape, particularly regarding the BioSecure Act and the US's national security approach to pharmaceuticals and biotech tariffs,' he said. He explained that the policy environment is likely to become more volatile, move faster and see greater government intervention over the next 10 to 20 years. "As opportunities arise, such as new partnerships in the CRO sector and reshoring, Korean companies must remain agile and proactive," he added. In addition to supply chain shifts, Lee Young-ju, a partner at the ESG Center of One Law Partners, addressed where Korean firms stand on environmental, social and governance compliance. 'Korean companies' awareness of ESG is not very high, with an average score of just 42 out of 100,' she said. 'The actual level of response to ESG issues is even lower than their awareness.' She pointed out that while the Trump administration has taken steps back on environmental regulations, this retreat is not absolute and that certain policies -- such as those addressing carbon emissions and sustainability -- remain relevant and could resurge in the future. Regarding the European Union, a consistent leader in tightening environmental regulations, Lee remarked: 'The EU has already taken proactive steps in regulating environmental standards and companies need to be ready for compliance." She cited examples such as the Carbon Border Adjustment Mechanism and the Corporate Sustainability Due Diligence Directive. Lee noted that as these regulations pick up speed, they will become a major test of business competitiveness for Korean companies. "Although the short-term impact may seem limited, it's crucial for companies to establish ESG frameworks and prepare to manage these challenges to enhance their competitive edge," she added.
Korea Herald
27-04-2025
- Business
- Korea Herald
Korea Herald Roundtable for Pharma & Biotech
The Korea Herald will host the 2025 US Strategy Roundtable for Pharma and Biotech at the Korea Chamber of Commerce and Industry in Seoul on Tuesday. The roundtable will bring together key players in the biopharmaceutical industry, including leading firms and innovative biotech startups aiming to expand into the US and global markets. Former Justice Minister Kang Kum-sil, now a partner at One Law Partners, will deliver the opening address. The keynote presentation will be given by Kurt Tong, managing partner at The Asia Group, a Washington-based strategic and investment advisory firm. The two-hour session will provide a focused platform for discussing how Korea's biotech and pharma sectors can align with evolving US policy dynamics and strengthen cross-border partnerships. ▶ Date: April 29 (Tuesday) 9:30 a.m. - 12:00 p.m.
Yahoo
30-03-2025
- Business
- Yahoo
US, China raise the stakes in Panama Canal ports row
China's fury at the sale of Panama Canal ports to a US-led consortium reflects how container hubs have become prized currency as Beijing and Washington vie for global influence, analysts say. Hong Kong conglomerate CK Hutchison this month sold 43 ports in 23 countries -- including operations in the vital Central American canal -- to a group led by giant asset manager BlackRock for $19 billion in cash. After two weeks of rhetoric, Beijing hardened its response on Friday and confirmed that antitrust regulators will review the deal, likely preventing the parties from signing an agreement on April 2 as planned. Speaking before the review was announced, experts told AFP that the deal allowed US President Donald Trump to claim credit for "taking back" the canal as part of his "America First" agenda. "The US (created) a political issue at China's expense and then has been able to declare victory," said Kurt Tong, managing partner at The Asia Group and a former top US diplomat to Hong Kong. "That doesn't feel good in Beijing." Some of the ports being sold are in nations that participate in Beijing's Belt and Road Initiative (BRI) -- a global development framework championed by Chinese President Xi Jinping. Ports are crucial to that network and China "has been notably successful in this area", said Henry Gao, a trade law expert at the Singapore Management University. Last month, Panama formally exited the BRI following a visit from US Secretary of State Marco Rubio. "There is indeed a growing trend of 'weaponising' ports and trade infrastructure as tools of geopolitical leverage," Gao said. - 'Nightmare' scenario? - On March 4, CK Hutchison sent shockwaves through China's shipping industry by announcing a deal of "unprecedented scale", according to Xie Wenqing, a port development researcher at the Shanghai International Shipping Institute. Chinese shipping firms questioned whether they could ensure neutral passage once the ports changed hands, he told AFP. "There are concerns about additional costs for Chinese ships or discriminatory treatment in terms of queuing orders," he added, highlighting the long-arm jurisdiction of US authorities. The deal -- coupled with recent US tariff hikes -- could undermine China's manufacturing dominance, argued Wang Yiwei, director of the Institute of International Affairs at the Renmin University of China. "Increased inspections and additional docking costs would erode China's competitive edge and disrupt global supply chains," he noted. The United States has used various justifications to target key infrastructure projects under the Belt and Road Initiative "to strip away these assets and weaken China's position as the world's factory", Wang added. John Bradford, executive director of the Yokosuka Council on Asia-Pacific Studies, said the deal would not serve China's interests but said some concerns were "overblown". Port operators such as CK Hutchison are commercial entities constrained by law and cannot decide matters of national sovereignty, for example whether a ship could visit a port or not. "If (operators) were to blatantly favour one company over another, that would generally speaking... be illegal," Bradford said. "Most countries have laws which say you have to treat different customers similarly, so the nightmare scenarios are not particularly realistic." - Hong Kong's role - Beijing's next steps in scrutinising CK Hutchison may also have far-reaching implications on Hong Kong and its role as China's business gateway to the world, according to analysts. "This whole Panama ports issue has refocused attention on the question (of) whether Hong Kong is a good place to put assets or to do business," said Tong, the former diplomat. "Certainly the foreign business community operating in Hong Kong is watching this issue very closely." CK Hutchison is registered in the Cayman Islands and the assets being sold are all outside China. That did not stop the State Administration for Market Regulation from announcing the antitrust review on Friday. Jet Deng, a senior partner at the Beijing office of law firm Dentons, said China's antitrust laws can be applicable outside its borders, similar to those of the United States and the European Union. Once a deal meets China's reportability threshold, a declaration is required even if the transaction takes place abroad, as long as the parties involved had substantial operations in mainland China, he said. Firms that fail to declare may be fined for up to 10 percent of their operating income from the preceding year, Deng added. Hung Ho-fung, a political scientist at Johns Hopkins University, said Beijing risks spooking "cautious" foreign firms that have already lowered their business exposure in Hong Kong. If the deal crumbles under Chinese pressure, people may believe that Hong Kong is converging with mainland China where "national security considerations are of utmost importance in any business deal", Hung said. ll-hol/je/rsc/fox
Yahoo
30-03-2025
- Business
- Yahoo
US, China raise the stakes in Panama Canal ports row
China's fury at the sale of Panama Canal ports to a US-led consortium reflects how container hubs have become prized currency as Beijing and Washington vie for global influence, analysts say. Hong Kong conglomerate CK Hutchison this month sold 43 ports in 23 countries -- including operations in the vital Central American canal -- to a group led by giant asset manager BlackRock for $19 billion in cash. After two weeks of rhetoric, Beijing hardened its response on Friday and confirmed that antitrust regulators will review the deal, likely preventing the parties from signing an agreement on April 2 as planned. Speaking before the review was announced, experts told AFP that the deal allowed US President Donald Trump to claim credit for "taking back" the canal as part of his "America First" agenda. "The US (created) a political issue at China's expense and then has been able to declare victory," said Kurt Tong, managing partner at The Asia Group and a former top US diplomat to Hong Kong. "That doesn't feel good in Beijing." Some of the ports being sold are in nations that participate in Beijing's Belt and Road Initiative (BRI) -- a global development framework championed by Chinese President Xi Jinping. Ports are crucial to that network and China "has been notably successful in this area", said Henry Gao, a trade law expert at the Singapore Management University. Last month, Panama formally exited the BRI following a visit from US Secretary of State Marco Rubio. "There is indeed a growing trend of 'weaponising' ports and trade infrastructure as tools of geopolitical leverage," Gao said. - 'Nightmare' scenario? - On March 4, CK Hutchison sent shockwaves through China's shipping industry by announcing a deal of "unprecedented scale", according to Xie Wenqing, a port development researcher at the Shanghai International Shipping Institute. Chinese shipping firms questioned whether they could ensure neutral passage once the ports changed hands, he told AFP. "There are concerns about additional costs for Chinese ships or discriminatory treatment in terms of queuing orders," he added, highlighting the long-arm jurisdiction of US authorities. The deal -- coupled with recent US tariff hikes -- could undermine China's manufacturing dominance, argued Wang Yiwei, director of the Institute of International Affairs at the Renmin University of China. "Increased inspections and additional docking costs would erode China's competitive edge and disrupt global supply chains," he noted. The United States has used various justifications to target key infrastructure projects under the Belt and Road Initiative "to strip away these assets and weaken China's position as the world's factory", Wang added. John Bradford, executive director of the Yokosuka Council on Asia-Pacific Studies, said the deal would not serve China's interests but said some concerns were "overblown". Port operators such as CK Hutchison are commercial entities constrained by law and cannot decide matters of national sovereignty, for example whether a ship could visit a port or not. "If (operators) were to blatantly favour one company over another, that would generally speaking... be illegal," Bradford said. "Most countries have laws which say you have to treat different customers similarly, so the nightmare scenarios are not particularly realistic." - Hong Kong's role - Beijing's next steps in scrutinising CK Hutchison may also have far-reaching implications on Hong Kong and its role as China's business gateway to the world, according to analysts. "This whole Panama ports issue has refocused attention on the question (of) whether Hong Kong is a good place to put assets or to do business," said Tong, the former diplomat. "Certainly the foreign business community operating in Hong Kong is watching this issue very closely." CK Hutchison is registered in the Cayman Islands and the assets being sold are all outside China. That did not stop the State Administration for Market Regulation from announcing the antitrust review on Friday. Jet Deng, a senior partner at the Beijing office of law firm Dentons, said China's antitrust laws can be applicable outside its borders, similar to those of the United States and the European Union. Once a deal meets China's reportability threshold, a declaration is required even if the transaction takes place abroad, as long as the parties involved had substantial operations in mainland China, he said. Firms that fail to declare may be fined for up to 10 percent of their operating income from the preceding year, Deng added. Hung Ho-fung, a political scientist at Johns Hopkins University, said Beijing risks spooking "cautious" foreign firms that have already lowered their business exposure in Hong Kong. If the deal crumbles under Chinese pressure, people may believe that Hong Kong is converging with mainland China where "national security considerations are of utmost importance in any business deal", Hung said. ll-hol/je/rsc/fox
