Feature
Expanding Applications and
Uses of Biotechnology
INCREASING APPLICATIONS OF BT
Biotechnology (BT) can create new substances
or introduce new industrial processes through
genetic engineering, fermenting, cell culturing,
and adding enzymes. Through the ages man-
kind has been using yeast and lactobacillus to
make fermented foods such as soybean paste,
kimchi, cheese, beer, and yogurt, which have be-
come embedded in our daily lives. High-tech
BT, which is based on genetic engineering, start-
ed to flourish with the start of modern genetic
engineering technology in 1973. First applied to
pharmaceutical, agricultural, and food indus-
tries, BT is now being used across an even wider
spectrum, including in energy, environment,
chemical, and electronics industries. The pro-
gression resembles information technology (IT)
at its early developmental stages. In the past, IT
applications were limited to electronics and tele-
communication industries, but it gradually
spilled into all types of industries, including
transportation, security, healthcare, and social
infrastructure.
|Figure 1 Expanding BT Applications
Expanding Pharma-
Agriculture
ceutical
Biotechnology
Energy /
Chemical
Environment
Expanding
KOH You-Sang
The global BT market, estimated at about $218
billion in 2008, is expected to expand 8 percent
annually into a $381 billion market by 2015.
Among several BT industry segments, biophar-
maceuticals, bio-energy, and bio-agriculture
will likely continue relatively high growth. The
market for biomaterials can replace petrochem-
ical materials and has a significant growth po-
tential once it reaches economic feasibility. The
production value of Korea’s BT reached $3.7 bil-
lion in 2007, claiming just 2 percent of the glob-
al market.
The reason for the increased adoption of BT is
because it is environmentally friendly and cost
effective compared to existing industrial meth-
ods. Since bioprocesses are more energy effec-
tive and simpler than chemical production pro-
cesses, they help to reduce costs in innovative
ways. As for paper manufacturing and textile
industries, enzyme cleaning can remove con-
taminants at a low temperature at 40–60 per-
cent of the cost of chemical cleaning. Also, a
production using microorganisms and enzymes
First Phase
Foods
Electronics
Other
/ IT
Second Phase
April 2010 | SERI Quarterly | 41
Expanding Applications and Uses of Biotechnology

|Table 1 Market Outlook of BT Industry Segments (Unit: $100 million, %)

Production Value of
Average Annual
Section 2008 2015 Korean BT
Growth (%)
Companies (2007)

Bio-Pharmaceutical 1,080 2,000 9.2 17

Bio-Energy 410 780 9.6 -

Diagnosis Devices /
290 400 4.7 2
Instrument
Bio-Agriculture 80 150 9.4 0.7

Bio-Material 320 480 6.0 17

Total 2,180 3,810 8.3 37

Source: Compiled by SERI.

can reduce air and water pollutants significant-
ly. For example, Chile’s state-owned Codelco,
the world’s top copper producer, recovers cop-
per from factory wastewater by using special
microorganisms.
There are many new products and businesses
stemming from BT. Randy Lewis of the Uni-
versity of Wyoming inserted the spider thread
gene into the DNA of a goat and succeeded in
producing goat milk that contains spider silk.
Many other research projects are now under
way to reap new functional materials from live-
stock, grains, and fruits by inserting a gene into
them. The use of microorganisms also can
sometimes produce unexpected breakthroughs.
For example, wastewater treatment with special
electricity-producing microbial fuel cells can
purify water and generate electricity.
BASF Korea produces vitamin B2 through a
one-step fermentation process. The company
put fungus Ashbya Gossypii and vegetable oil
in fermentation equipment. As fungus grows in
the equipment, it produces vitamin B2. Com-
pared to the eight-step chemical process used in
the past, waste, CO2 emissions, and raw materi-
al costs incurred are reduced by 96 percent, 33
percent, and 64 percent, respectively. This re-
port aims at suggesting general ideas on direc-
tions of future BT development by examining
various cases of BT applications.

|Table 2 BT Effectiveness in Reducing Air and Water Pollutants (Unit: %)

Cognis Mitsubishi Rayon

Domtar Cereol
(Germany; cosmetics, (Japan; chemicals,
(Canada; paper, pulp) (Germany; food products)
healthcare, detergent) plastics, fiber)
Emission of air
△60 - △80 -
pollutants
Emission of water
△50 △60 - △88
pollutants

Source: “The Application of Biotechnology to Industrial Sustainability,” Sustainable Development, 2001, OECD Publishing.

42 | www.seriquarterly.com
 KOH You-Sang

BT Applications in Major availability remain the biggest obstacle to wid-

Industries
Bioethanol
Bioethanol —or biofuel—is a clean energy that
could replace gasoline, produced by fermenting
grains like corn and sugar cane. Indeed, it can
be produced from any biomass that contains
carbohydrates. In the future, non-grain sources
(e.g., weeds, waste woods, and marine microor-
ganisms) will become a more popular source for
bioethanol production as grain-made bioetha-
nol may cause a surge in grain prices and forest
destruction. For the longer-term future, re-
searchers currently are working on developing a
third-generation bioethanol, which has marine
microorganisms as the source. In 2008, the size
of the bioethanol market was estimated at $41
billion. For the mid- and long-terms, bioethanol
production will continue to grow as the use of
bioethanol is promoted by many governments.
At the moment, competition is heating up
around the world to develop a technology to
produce second-generation bioethanol from
cellulosic materials. The United States and
Spain have already started to use next-genera-
tion bioethanol production in which ethanol is
made from weeds and woods. However, insuf-
ficient supplies of biomass or raw materials for
bioethanol production due to limited land
er use of bioethanol. In 2050, there will be a to-
tal of 44 million hectares of additional land
potentially available for biomass cultivation,
out of which 80 percent will be in Africa and
South American countries.1 This shows a mis-
match between the unused land available for
biomass cultivation (supply) and the main con-
sumers of biofuel (demand) in the United
States, Europe, and Asia. Consequently, as an
alternative, using marine biomass for bioetha-
nol production looks more promising over the
long term. Korea, a country surrounded by
seawater on three sides, especially needs to de-
velop the still-nascent third-generation tech-
nology to produce bioethanol from marine mi-
croorganisms.
Biochemical
Unlike petrochemical materials made from
crude oil, biochemicals are produced from or-
ganic matters such as plants and microorgan-
isms and are expected to replace existing petro-
chemical materials used to produce packaging,
food containers, automobiles, electronic com-
ponents, etc. Considering that worldwide con-
sumption of chemical materials is about 250
million tons per year, the potential market for
biochemicals appears to be colossal.
Biochemicals attract considerable interest be-

|Table 3 Countries Promoting the Blend of Bioethanol with Gasoline

Countries (% Blend of Bioethanol)

Brazil (20–25%), US (10%), Canada (10%), China (10%),

More than 10% bioethanol
Colombia (10%), Peru (10%), South Africa (10%), Thailand (10%)

Less than 10% bioethanol Paraguay (7%), India (5%), Switzerland (5%), Japan (3%)

Source: Compiled by SERI.

1 Richard
 Doornbosch and Ronald Steenblik, “Biofuels: Is the Cure Worse than the Disease?” (paper presented at the OECD Round
Table on Sustainable Development) Paris, France, September 11–12, 2007.

April 2010 | SERI Quarterly | 43

Expanding Applications and Uses of Biotechnology

cause they are environment-friendly. For exam- The fact that bioplastics
ple, biochemicals degrade naturally by them-
selves after 1–2 years as opposed to chemical command a higher price
materials such as PVC, vinyl, and Styrofoam,
which take several hundred years to degrade.
than conventional
plastics is a major hurdle
Another advantage of biochemicals is greatly
reduced energy consumption and greenhouse
to further expansion.
gas emissions released during production pro-
cess. DuPont’s Bio-PDO consumes 40 percent
less energy and emits 20 percent less greenhouse
gas to produce than petrochemical PDO. Addi-
tionally, it does not release harmful environ-
mental hormones such as dioxin, making it suit-
able for women’s hygienic products, food
containers, and children’s merchandise.

Along with growing interest in pollution and
health, biochemical production is expected to
increase. Also, production of biochemicals,
which began to be commercialized in 2004,2 is
expected to reach 2.5 million tons in 2015, up
from 400 thousand tons (about $1 billion) in
2004. A persistent shortcoming of bioplastics is
that they are weaker than chemical plastic in
terms of strength and heat resistance. But the
difference has narrowed recently, and the use of
bioplastics has become more popular, especially
in the electronic and auto parts industries. Com-
puter makers Sony and Fujitsu have released
laptop computers made with bioplastic exterior
cases; the mobile industry’s Motorola and NTT
DoCoMo have used bioplastics in cell phone
casings; and automakers Toyota and Chrysler
are using bioplastics in car seats and tire rein-
forcement. Currently, the fact that bioplastics
command a higher price than conventional plas-
tics is a major hurdle to further expansion. But
market potential is high as technological devel-

|Table 4 Current Development of Major Biochemicals

Year of
Type Raw Material Main Uses Major Companies
Commercialization

Food packaging, fabrics,

PLA 2002 Corn DuPont, Mitsui Chem, Toyota
beverage bottles

3-HP 2004 Corn Diapers, feminine hygiene products Cargill, Codex

Bio-PDO 2006 Corn Car paint, carpet, cosmetics DuPont, Genencor

Polyols 2006 Vegetable oil Car seats, furniture insulation Cargill

PHA Planned in 2010 Corn, vegetable oil Household goods, plastic film ADM, Metabolix

Note: PLA (polylactic acid) 3-HP (3-hydroxypropionic acid), PHA (polyhydroxyalkanoates), PDO (propanediol)

2L
 i Shen, Juliane Haufe, and Martin K. Patel, “Product Overview and Market Projection of Emerging Bio-based Plastics,” PRO-BIP
2009, June 2009, Utrecht University, available at: <http://www.epnoe.eu/research/Life-Cycle-Analysis>.

44 | www.seriquarterly.com

|Figure 2 Classifications of Biocosmetics by Function
Pharmaceuticals
Cosmeceuticals Nutraceuticals
Cosmetics Nutricosmetics Nutrition
opment and an increasing use of bioplastics will
enhance their price competitiveness against con-
ventional plastics.
Biocosmetics
Biocosmetics contain natural and biocompati-
ble agents that enhance anti-aging and whiten-
ing effects of cosmetics. In addition to cosmetic
functions to match traditional cosmetics, bio-
cosmetics have dermatological effects. For ex-
ample, they soothe skin breakouts and maintain
skin health. Thus, they are called cosmeceuti-
cals. Today, biocosmetics seek more enhanced
dermatological functions such as moisturizing,
ultraviolet ray protection, anti-wrinkling, whit-
ening, acne prevention, hair re-growth and fra-
grance. Also, there are edible cosmetics called
nutricosmetics appearing, blurring the bound-
ary between food and cosmetics. Cerebroside,
which is isolated from the spleen of a patient
with Gaucher’s disease, is an exemplary edible
cosmetic, regarded as an effective treatment for
dermatologic disease such as atopic dermatitis.
Biocosmetics have developed due to technologi-
cal innovation in gene manipulation, advance-
ment in bio processes, and technological ad-
KOH You-Sang
Category Products
Retinol, botox (wrinkle removal),
Cosmeceuticals Ascorbic acid (whitening),
mushrooms (antioxidants), etc.
Cerebroside (moisturizing), hypericin
(treatment of atopic dermatitis), hyaluronic
Nutricosmetics acid (skin elasticity), isoflavone (skin
protection from ultraviolet light), etc.
Vitamins, minerals, glucosamine,
Nutraceuticals ginsengs, Coenzyme Q10, lactic acid
bacteria, ginkgo extracts, etc.
vancements in identifying useful natural
resources. In the past, active components of cos-
metics were produced through chemical synthe-
sis, but now bioprocesses utilizing gene manipu-
lation technology are gaining ground. For
example, some cosmetic products use stem cell
culture solutions containing many antioxidants
and growth factors as ingredients. Also, there
are biocosmetic products being used for treat-
ments at dermatologist clinics for skin peeling
treatments.
Bioprocessing
All organisms absorb and digest various metal
and mineral substances through their cells.
There are predictions that if this ability to treat
metal substances is utilized in manufacturing, it
will prompt an industrial revolution in the dis-
play and semiconductor industries over the long
term. Specifically, there is a technology that in-
creases organic light-emitting diode (OLED)
brightness tenfold by using DNA thin films.
Also, there are attempts to utilize viruses or en-
zymes for absorbing and moving metals and
semiconductors when manufacturing thin films
and electrodes. Silicatein from a marine sponge
has the ability to turn semiconductor materials
April 2010 | SERI Quarterly | 45
Expanding Applications and Uses of Biotechnology

|Figure 3 Neuron Chip: Neuron Tissue on Semiconductor Chips

Silicon Oxide
Semiconductor

Working Mechanism
Thoughts →
Neuron tissue emits ions that
carry electric charges →
Electricity is generated on
semiconductor chips below →
Signals are sent to
operate devices

Rat’s Neural Tissue

such as silicon, zinc oxide, titanium dioxide, and Biosensors

gallium oxide into nano-structured thin films. If
this enzyme is used, thin films and electrodes
can be made into any desired form.
In the longer term, electronic and IT devices in-
corporated with organisms are expected to be
developed. Although it is still in the researching
stage, “Brain Computers” that can be controlled
just by thinking via the interface consisting of
neurons fused with semiconductor chips is also
presented.3
Electronic Nose & Tongue (e-Nose & e-Tongue)
imitating human sensory functions is the next-
generation biosensor. It is designed to detect tiny
particles. The human nose has 370 kinds of re-
ceptors that conjugate odorant molecules. These
receptors discern hundreds of thousands of
smells by forming various combinations be-
tween odors and receptors. e-Nose & Tongue is
an array of sensors whose electric resistance or
colors change when odorant or taste-causing
molecules touch the sensors. The reactively

|Figure 4 Human Nose and Tongue vs. Electronic Nose and Tongue

Perception
Human of apple
taste and
Odor and taste coffee odor
receptors Analysis by brain

e-Nose & Tongue

Perception of odor
Odor and taste sensors Analysis by software and taste information

3P
 eter Fromherz, “Semiconductors with Brain” in Eva-Maria Neher, ed., Aus den Elfenbeintürmen der Wissenschaft, 2nd XLAB Science
Festival (Göttingen: Wallenstein, 2006), pp. 43–71.

46 | www.seriquarterly.com

The United States, mindful
of the September 11
terrorist attacks, is very
active in supporting
studies of biosensors. In
2007 alone, the United
States invested $1.1 billion
in related R&D projects.
changing sensors are analyzed by pattern analy-
sis software. If the test involves a liquid, it is
called e-Tongue; if it is gas, it is called an e-Nose.
Functions and operations of this e-Nose &
Tongue are an imitation of human sensory or-
gans.
The e-Nose & Tongue is different from current
biosensors in that it can detect various substanc-
es simultaneously. Based on a one-to-one recog-
nition system, current biosensors need ten dif-
ferent sensors to detect ten different materials.
The e-Nose & Tongue, however, analyzes pat-
terns of recognition signals by using a one-to-N
method, and it is possible to detect multiple sub-
stances simultaneously with one sensor. Based
on this unique characteristic, it can substitute
various sensors in the future. It can be used
more widely in foods, medicine, and the envi-
KOH You-Sang
ronment, checking for food spoilage or place of
origin, detecting drug and toxic materials, and
monitoring factory gas emissions. It can be en-
cased in a portable device to leverage its
strengths such as its real-time analysis and con-
venience in measurement readings.
Biosensors, incorporated with more sensitive
recognition elements such as enzymes and mi-
croorganisms, can be utilized to prevent bioter-
rorism. Biosensors can detect and help neutral-
i z e biolog ic al weapons and poisonous
substances and gases. The US company Nano-
gen has developed a laptop-size poison detector
“NanoChip.” MIT professor Drew Endy suc-
ceeded in developing a sensor that, when detect-
ing the explosive substance trinitrotoluene
(TNT), emits fluorescent light by inserting fluo-
rescent genes into the DNA of microbes that re-
act to TNT. Researchers at the University of
California at Berkeley also developed a toxic
substance sensor chip by combining electronics
with living cells. The cells serve as a gate that
stops the electricity current if it is alive and
opens the gate if the cell is dead because of ex-
posure to a toxin.
The United States, mindful of the September 11
terrorist attacks, is very active in supporting
studies of this area. In 2007 alone the United
States invested $1.1 billion in related R&D proj-
ects. The country has set up national institutes
committed to bioterrorism prevention at Boston
University and the University of Texas and is
planning to establish nine regional institutions.
BT to Revolutionize Future
Industries and Lifestyle
As seen above, BT will serve as a key factor that
will determine industries’ competitiveness in
the future. Fused with information technology,
green technology, and nanotechnology, BT can
April 2010 | SERI Quarterly | 47
Expanding Applications and Uses of Biotechnology

|Figure 5 Prospective Applications of BT in Industries

Application Ten years later

to all areas
Current level
Spread of BT
application to
major industries
Introduction of
BT to leading
industries

R&D

Stages of BT Pharmaceutical Agricultural Food industry Energy & environment Chemical Electronic &
application industry industry industries industry IT industries

Source: SERI estimates.

Note: T he level of BT application ten years later is based on an estimated number of BT products and kinds and the level of bioprocess,
 as well as the R&D trend of advanced countries.

generate various new business opportunities.
Ten years from now, BT will have a routine role
in energy, environment, and chemical indus-
tries. In electronics and IT industries, it will be
used more frequently. New business opportuni-
ties, such as a biocomputers that utilize DNA as
a memory device and a high-efficiency catalyst
to form a complex with nanoparticles, will be
more abundant if BT is fused with information
technology and nanotechnology.
Companies should continue to pursue process
innovation by using BT and search for new
business opportunities. Applying BT to existing
processes will help lower costs and foster envi-
ronment-friendly business management. Partic-
ularly, Korea, a country which is traditionally
strong in fermentation, enzymes, and microbial
methods can reap greater benefits with new
businesses in the BT industry.
Translation: LEE Hae-Won

As BT is more widely applied to various indus- Keywords

tries, its effect and influence on people’s lives Biotechnology, expanding applications, Korea’s BT
will become increasingly visible. Vertical farms industry, Korea’s BT market, bioethanol, biochemical,
biocosmetics, bioprocessing, biosensors
in cities, cars using over 50 percent bioplastics,
and packages that can detect poisons and
harmful substances in our daily lives are not
too far off in the distant future. BT has a signifi-
cant meaning as it can be used as an alternative
solution to global-scale problems such as global
warming, food shortages, ecosystem destruc-
tion, and aging populations. The OECD started
the “Bioeconomy to 2030” project in 2005,
which aimed to draft a broad policy agenda for KOH You-Sang is a research fellow at SERI. His research fo-
governments. The goal is to promote growth cuses on bio and petrochemical industries, industry clustering,
and technology management. He holds an MBA from Korea
and welfare of the global economy by tackling Advanced Institute of Science and Technology.
global issues through innovative BT. Contact: yskoh@seri.org.

48 | www.seriquarterly.com
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