Technology commercialization refers to the process of creating services from technologies or products developed with government research and development (R&D) budgets and selling them in the market. South Korea's technology commercialization rate ranks among the lowest in OECD countries. ChosunBiz introduces successful cases of technology transfer or startups to promote technology commercialization and seeks improvements to the system through a series titled ‘Digging for R&D Gold.’ [Editor’s note]
There is a company that sells a 500mL bottle of water for 250 million won. It's QTOP. Of course, it's not just plain water. This product is a special water that has concentrated oxygen-17, one of the isotopes, up to 90%. Isotopes refer to atoms that have the same atomic number but different numbers of neutrons, resulting in different masses. QTOP is a specialized company that uses this small difference to create various isotopes.
Atoms are made up of a nucleus and electrons that orbit around the nucleus. The nucleus contains protons and neutrons, with the number of protons remaining unchanged, determining the atomic number. For example, hydrogen has 1 proton and an atomic number of 1, while oxygen has 8 protons and an atomic number of 8.
On the other hand, the number of neutrons can vary. The most common isotope, oxygen-16, has 8 neutrons, but the isotope oxygen-17 has 9, and oxygen-18 has 10. Although they are the same element, differing numbers of neutrons result in changes to their physical properties. Isotopes share the same chemical properties, but their physical characteristics, such as density, boiling point, and radioactivity, differ.
Isotopes are being utilized in various industrial sectors. In the semiconductor industry, Samsung Electronics and SK hynix use deuterium, while in the medical industry, lutetium-177 is used as a raw material for the prostate cancer drug Pluvicto. Recently, radioactive isotopes are also needed for the small modular reactor (SMR) that the government is currently promoting. Although they are used in various industries, their production is challenging, leading to heavy reliance on imports.
QTOP is a startup that is challenging the domestic isotope market. CEO Jung Do-young worked as a researcher at the Korea Atomic Energy Research Institute for over 30 years. Instead of conventional technologies such as centrifugation and distillation that existing corporations use, QTOP utilized its own laser isotope separation technology to produce oxygen-17 and oxygen-18.
Starting with seed funding, the first investment in 2022, QTOP quickly grew by attracting pre-A investment in 2023 and series A investment in 2024. This year, it is constructing a factory in Sejong City just four years after its founding. It has successfully launched a rarely seen isotope in Korea.
On Feb. 25, I met CEO Jung directly at the QTOP headquarters in Yuseong-gu, Daejeon. I learned why he ventured into entrepreneurship after ending a 30-year career as a researcher and what challenges he faced while transitioning from researcher to CEO.
-I transitioned from a 30-year researcher to entrepreneurship.
“Originally, I had never thought about starting a business. I took my first steps into society at the Korea Atomic Energy Research Institute and began research in Daejeon in 1988. Since then, I have been researching laser isotope separation. It is quite rare to engage in R&D for over 30 years in one field.”
-Were there no difficulties?
“I originally founded as a research institute company in 2012. At that time, there was a global shortage of concentrated oxygen-18. A bio company CEO determined that oxygen-18 concentrated water needed to be produced in Korea while manufacturing radioactive pharmaceuticals for hospitals, and I was contacted while looking for a company with relevant technology. During the research process, the research institute company faced challenges such as securing funding and was on the verge of disappearing. Eventually, I decided to directly take over the business and embarked on my entrepreneurial journey. I pondered deeply as it felt like everything would disappear, but I considered it my destiny.”
-Why did you choose to establish a technology startup instead of transferring technology?
“Technology transfer involves solving problems from a third-party perspective. However, if you start a business, you must invest everything you have. Sometimes, it can be so challenging that it feels like it could lead to failure. Technology transfer attempts to solve complex issues from a distance, while entrepreneurship is like war. Every day is intense. I believe that it is impossible to solve problems by exchanging technology while being a researcher at a research institute. Therefore, I advise my juniors to ‘do it directly; achieving commercialization through technology transfer alone is challenging.’”
-I’ve grasped a challenging item called isotopes, but I am successfully establishing a foothold.
“To commercialize technology, you must first consider how to select the R&D topic. Securing superior technology compared to others is not easy. Moreover, it is important to focus on one area. Research on oxygen-18 and carbon-13 has been ongoing since 2010. Currently, while foreign competitors are also attempting laser isotope separation technology, QTOP is the only company that has succeeded in commercialization. Even if the environmental conditions for commercialization are well-established, ultimately, people are what matter. Everything is done by people. I believe that the most crucial aspect is how to assemble a team of capable and like-minded individuals.”
-What is the startup environment like in our country?
“After starting the business, I realized that the startup investment market in Korea is better established than I thought. The investment market accelerators and venture capitals appear to have advanced significantly. If the item is excellent and the founder's capabilities are recognized, I think getting investment is not that difficult. A venture capital that invested in the company made the investment decision right at the first meeting. It was an easier process than expected. Government support programs like TIPS are also running remarkably well. Our company received 500 million won over two years through the general TIPS program and invested it in carbon-13 R&D.”
-Why do you emphasize technology commercialization?
“There is a saying that ‘non-practicalized technology is meaningless.’ I too believe that the goal of R&D is to commercialize technology, and I consider the ultimate completion to be commercialization. If R&D has started, isn’t it desirable to try for commercialization, be it success or failure? Recently, I saw cases where technologies that we have long known could not be associated with business. In Silicon Valley, a startup emerged that provides services measuring bodily metabolism using concentrated water. This technology has existed for a long time, but it has been service-oriented, targeting the global market. We must also focus on practicalizing our technology.”
-Are there any aspects of the system that need improvement?
“While the startup support environment is well established, there are still limitations in manufacturing-based entrepreneurship. We currently operate a rental factory but have no space to expand our facilities. Even if we want to build a factory, securing land within an industrial complex is challenging. Foreign companies are offered long-term leases of 20 to 30 years, while there is no support for domestic startups. Despite population dispersal policies benefiting companies relocating from the capital region, there has been no support for companies founded in the region. Hence, we ultimately have to consider leaving Daejeon. The land prices are high, and I may have to move regardless of my intentions.
Support for research personnel in small and medium-sized enterprises should also be activated. Currently, there is a system that dispatches researchers from government-funded research institutes to startups or small and medium enterprises, but the salary support is too low. More active support is necessary. Through this, we can learn about holes in the actual industrial fields through communication. New ideas may emerge in that process.”
-Are there any aspects of the system that need improvement?
“The Ministry of Science and ICT should give higher scores to commercialization in R&D evaluations. If roles between departments were divided, basic research should be handled by the Ministry of Science and ICT, R&D by the Ministry of Industry, and commercialization by the Ministry of Small and Medium Enterprises in a relay format.”
-What are the company’s mid- to long-term goals?
“After stabilizing and normalizing the company, I intend to step back to prepare for the next stage. My goal is to successfully launch carbon-13 in the market and push for an IPO. I expect it to happen in 2028 or 2029, and I am fully committed to achieving this across the organization.
QTOP takes pride in commercializing new technology. Unlike existing isotope separation technologies, which were associated with uranium enrichment or nuclear weapon development, QTOP aims for industrial application. Our role is to ensure that isotopes can become essential materials in various industries. In the future, we also plan to actively participate in the quantum industry, beyond just isotope separation technology.”