Korean biotech companies struggle to find workers as pay rises

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South Korean biotech companies are struggling to find workers as they demand high salaries.

“We received investments to develop new drugs and are currently looking for employees with a master’s degree or higher,” said a chief executive officer of a biotech company on Wednesday. “We are in a quandary as people with three to four years of experience are asking for six-figure salaries.”

The CEO expressed frustration by saying that “such high salaries are unaffordable for startups.”

“In a situation where the demand for talent is high and the supply of qualified individuals is extremely limited, it does not seem like this shortage will be resolved within one or two years,” he said.

According to a survey by the Ministry of Trade, Industry and Energy, the shortage rate of technical workforce in the bio-health industry stood at 3.4 percent as of 2021, which suggests that 1,234 more professionals are required.

It was the second highest among 12 major industries in the country, including machinery, displays, and semiconductors, after software, which recorded 4 percent.

Bio-health industry insiders point out that the future poses even bigger challenges.

According to a government plan to foster bio-health talents, the bio-health industry is expected to require around 108,700 new professionals from 2022 to 2027.

However, the supply of new professionals to the industry during the same period is expected to reach only 34,000. “Even among master’s and doctorate holders, specialized professionals with experience working in clinical teams for specific pharmaceuticals are essential,” said an industry insider. “It takes time to foster this kind of talent, but the rapid growth of the Korean biotech industry has prevented the talent shortage from being resolved.”

The talent shortage is leading to salary increases. Major domestic bio-health companies like Samsung Biologics Co. and Celltrion Inc. saw significant salary increases during the Covid-19 pandemic.

Samsung Biologics’ average salary increased by 23 percent to 92 million won ($68,560) in 2022 from 75 million won in 2019.

Celltrion saw a 17 percent increase to 81 million won from 69 million won during the same period. SK Bioscience Co. also recorded a 35 percent increase to 81 million won from 60 million won.

This compares to an average salary increase of 13 percent for listed companies over the same period, and is on par or even higher than top market cap companies such as Samsung Electronics Co. at 25 percent, Hyundai Motor Co. at 9 percent, and SK hynix Inc. at 14 percent.

The salaries of researchers with master’s and doctoral degrees in particular have increased significantly. The research staff salary at Celltrion reached 93.27 million won in 2022, up 20 percent from 77.49 million won in 2019, surpassing the overall average salary at Celltrion.

Not only large companies but also some mid-sized and small biotech companies saw substantial salary increases. Alteogen Inc., which had an average salary of 46.05 million won in 2019, saw a 120 percent increase to 116.8 million won in 2022, and LegoChemBio recorded a 20 percent increase to 82 million won from 68 million won in the same period.

CisGEN Biotech, which saw a surge in sales with its Covid-19 diagnostic kits, grew 34 percent to 85 million won from 63.2 million won over the same period.

Talent shortage is expected to intensify, with large companies such as Lotte and CJ continuing to join the bio industry, said an industry official.