Expansion of a Chinese Genomics Firm in South Korea
In June, a China-based genome analysis firm, Novogene, established a wholly owned subsidiary named Novogene Korea, signaling its formal entry into the South Korean market. This move comes as the company, ranked fifth globally in genome sequencing capabilities, aims to expand its reach by offering discounts of 20–30% to domestic hospitals and research institutions.
However, this expansion has raised concerns among experts about the potential risks associated with transferring sensitive genetic data overseas. Genetic information is considered highly confidential, as it contains critical biological details about individuals, including predispositions to diseases and responses to medications. The transfer of such data could pose significant national security risks, especially if foreign entities gain access to it.
One major concern is that Novogene may be analyzing genetic data collected in South Korea at facilities located in mainland China, Hong Kong, or Singapore. This raises questions about the security and privacy of the data, as well as the potential for misuse. If a foreign biotech company were to identify specific health vulnerabilities of South Koreans and develop treatments ahead of others, the country could face a situation similar to the COVID-19 pandemic, where reliance on foreign suppliers for essential medicine becomes a critical issue.
Genome sequencing involves decoding an organism’s complete set of genetic information, which can reveal not only physical traits but also disease susceptibilities and drug reactions. This information is akin to a comprehensive book, with each gene representing a sentence. Advances in technology have made it possible to identify individuals through their genetic data, highlighting the importance of safeguarding this information.
Founded in 2011 by Li Ruiqiang, who previously served as a vice president at the Beijing Genomics Institute (BGI), Novogene has faced scrutiny in other regions. In 2023, the firm was reported to have sent genetic data collected in Taiwan to China, prompting fears of data leaks. Taiwanese media outlets highlighted that Novogene won low-cost contracts for genome testing at schools and hospitals, then outsourced the analysis to Chinese companies overseas.
This is not the first time a Chinese genome analysis company has faced criticism over overseas data transfers. In 2021, Reuters reported that BGI had collected genetic data from more than 8 million pregnant women across 52 countries for population genetics research and allegedly shared it with the People’s Liberation Army. Such data could potentially be used to develop genetically engineered pathogens targeting specific populations or even disrupt food supply chains in the United States.
Despite its promotional efforts in South Korea, Novogene Korea is primarily functioning as an intake office, with most analyses conducted at centers in China or Hong Kong. Industry sources suggest that the domestic unit lacks its own sequencing equipment, indicating that the actual genome sequencing takes place overseas. This has led to concerns about the company’s intentions to expand beyond the Chinese and Singaporean markets into South Korea.
Novogene and its South Korean subsidiary have not responded to inquiries regarding the transfer of genetic data abroad. Experts warn that South Korean genome data could end up in China, raising sovereignty concerns. They argue that a country with extensive biological datasets could develop highly effective drugs tailored to another nation’s population, increasing dependency on foreign pharmaceuticals.
Additionally, there is a risk of data breaches once the information is overseas. In 2023, U.S.-based genetic testing company 23andMe suffered a breach affecting the genetic information of 6.9 million people, primarily those of Jewish and Chinese descent.
Both the United States and China have classified genome data as a matter of national security and imposed reciprocal sanctions. In January, the U.S. Department of Defense designated BGI Group and its subsidiary MGI as “Chinese military companies,” citing allegations that genome sequencing firms were supporting the Chinese military. In response, China banned imports of gene sequencing equipment from Illumina, the largest genome analysis company in the world.