South Korean chemicals firm LG Chem on Monday signed a memorandum of understanding with Seoul National University’s College of Agriculture and Life Sciences to work together to develop green biotechnology.

LG Chem said it would invest some 5 billion won ($4.22 million) over the next five years for research and development of future core technologies, such as crop protection agents.

“Competition is heating up among countries to dominate the green biotech industry in advance. The sector is highlighted as a key to solving global food shortage in the near future,” said Park Jin-soo, CEO and vice chairman of LG Chem.

“We will put forth all-out efforts to up Korea’s national competitiveness in the sector,” Park added.

For starters, the two parties selected 11 key research projects, most of which are related to future food sources, said LG Chem.

The chemicals firm set foot in the green biotech sector earlier this year by taking over Dongbu Farm Hannong, a leading local agrochemical technology manufacturer.

As a newcomer, LG Chem expects the MOU to boost its competitiveness in the field.

The global market size of the green biotechnology industry stood at $100 billion in 2014, and it is predicted to worth over $140 billion by 2020. 

By Kim Bo-gyung (lisakim425@heraldcorp.com)