Novogene Enters Korea, Sparking Genome Data Fears

Expansion of a Chinese Genomics Firm in South Korea

A China-based genome analysis firm, Novogene, has taken a significant step by establishing a wholly owned subsidiary, Novogene Korea, in June. This move marks the company's formal entry into the South Korean market. As one of the top five global leaders in genome sequencing, Novogene is leveraging its expertise to target domestic hospitals and research institutions. The company is offering discounts ranging from 20% to 30%, aiming to attract clients through competitive pricing.

However, this expansion has raised concerns among experts. The genetic data involved contains sensitive biological information about South Koreans. If such data is transferred overseas, it could pose a national security risk. For instance, if a foreign biotech company were to identify diseases that South Koreans are particularly vulnerable to and develop treatments ahead of others, the country could face a situation similar to the COVID-19 pandemic, where it relies on foreign suppliers for essential medicine.

Risks Associated with Genetic Data Transfer

Experts warn that the transfer of genetic data overseas could have serious implications. The concern is that Novogene might be analyzing genetic data collected in South Korea at facilities in mainland China, Hong Kong, or Singapore. This raises questions about how the data is handled and who has access to it.

A genome refers to the complete set of genetic information in an organism. It reveals not only physical traits like height and appearance but also predispositions to certain diseases and drug responses. This information can be compared to an entire book, with each gene representing a sentence. Advances in genome sequencing technology have made it possible to identify individuals through their genetic data, which is why such information is considered highly sensitive.

Background of Novogene and Controversies

Novogene was founded in 2011 by Li Ruiqiang, who previously served as a vice president at the Beijing Genomics Institute (BGI), the world’s second-largest genome sequencing company. In 2023, the firm faced controversy in Taiwan after it was reported that genetic data collected there was sent to China. Taiwanese media outlets, including the Liberty Times, reported that Novogene, through a local agent, won low-cost contracts for genome testing at schools and hospitals, then outsourced the actual analysis to Chinese companies overseas—raising fears that Taiwanese genetic data could be leaked to China.

This is not the first time a Chinese genome analysis company has faced scrutiny over overseas data transfers. In 2021, Reuters reported that BGI had collected genetic data from more than 8 million pregnant women in 52 countries for population genetics research and allegedly shared it with the People’s Liberation Army. At the time, Reuters noted that such data could be used to develop genetically engineered pathogens targeting specific populations and even food supply chains in the United States.

Operations and Concerns in South Korea

Novogene Korea is promoting its services with discounted fees and shorter turnaround times. However, industry sources suggest that the domestic unit functions primarily as an intake office without its own sequencing equipment. Most analyses are believed to be conducted at centers in China or Hong Kong. “Novogene Korea is essentially a sales operation, with the actual genome sequencing taking place overseas,” one industry official said. “The company appears to be looking beyond the Chinese and Singaporean markets to expand its presence in South Korea.”

Despite these concerns, Novogene and its South Korean subsidiary did not respond to questions regarding the transfer of genetic data abroad. Experts warn that South Korean genome data could end up in China, raising sovereignty concerns. They note that a country with extensive biological datasets could develop highly effective drugs tailored to another nation’s population, deepening dependency on foreign pharmaceuticals.

Potential Security Risks

There is also the risk of such data being hacked once 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. This highlights the vulnerability of genetic data and the potential consequences of mishandling it.

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.