China-based genome analysis firm Novogene established a wholly owned subsidiary, Novogene Korea, in June, marking its formal entry into the South Korean market. Ranked fifth globally in genome sequencing capabilities, the Beijing-headquartered company is targeting domestic hospitals and research institutions with discounts of 20–30% as part of its expansion strategy.
The concern, experts warn, is that 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 example, if a foreign biotech company were to identify diseases to which South Koreans are particularly vulnerable and develop treatments ahead of others, the country could face a situation similar to the COVID-19 pandemic, relying on foreign suppliers for essential medicine.
Concerns are mounting as Novogene is believed to be analyzing genetic data collected in South Korea not domestically, but at facilities in mainland China, Hong Kong or Singapore.
A genome refers to the complete set of genetic information in an organism, revealing not only physical traits such as height and appearance but also predispositions to certain diseases and drug responses. It 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.
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 drew controversy in Taiwan after it was reported to have sent genetic data collected there 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.
Novogene Korea is promoting its services with discounted fees and shorter turnaround times. However, industry sources say the domestic unit functions primarily as an intake office without its own sequencing equipment, with most analyses 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.”
Novogene and its South Korean subsidiary did not respond to questions from The Chosun Ilbo 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.
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.
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.
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