[Reporter’s Notebook] Disappointing social contributions

Korea’s diagnostic kit manufacturers enjoyed an unprecedented boom due to the Covid-19 outbreak last year.

Most diagnostic device makers posted record-high sales and large financial gains from share price hikes reflecting their active exports of coronavirus-related products.

However, their social contribution activities were more than disappointing.

According to their audit reports submitted recently to the Financial Supervisory Service (FSS), five out of the nine large diagnostic kit makers either reduced their donations for the public good or failed to make any donations in 2020.

For instance, Access Bio posted sales of 112.3 billion won ($101 million) from the diagnostic kit business, a whopping 162.57 percent increase from 2019. However, its donation stood at 4.8 million won, down 54 percent from the 8.9 million won.

Genomictree, PCL, Humasis, and Mico Biomed also recorded the largest sales since their establishment last year but did not make any donations.

The absence of donations is disappointing given the sales growth of the four companies. Genomictree, PCL, Humasis, and Mico Biomed had recorded sales growth of 339.89, 149,805, 399.61, and 1,115.69 percent over the cited period.

In contrast, Seegene, Sugentech, Philosys Healthcare, and Bioneer made sharply increased social contributions.

Market leader Seegene reported earnings surprise every quarter, with sales surpassing 1 trillion won last year, a whopping 822.66 percent increase from 2019.

The company responded with a large donation of 6.9 billion won, marking the largest contribution made by a local diagnostic kit developer.

Sugentech, Bioneer, and Philosys Healthcare, which recorded sales growth of 1,075.44, 470.33, and 267.46 percent, also increased their donation by 229, 8,506, and 1,000 percent, respectively.

The FSS data showed the polarized donations by diagnostic kit developers.

The donation, of course, is not a corporate duty. No one can force companies to make or increase contributions in proportion to their sales growth.

However, it was disconcerting to see the industry’s donation fell far short of expectations, although the government actively supported the kit makers by providing funds and easing regulations so that they could export their products faster.

Medical device markers make profits by selling products related to people's health. Many of them may not directly sell their products to customers, but they must not forget that end users are ordinary people.

It is not clear when the Covid-19 crisis will end. To remain sustainable even after the epidemic, the kit makers should meet the public's expectations.

The companies’ efforts to fulfill social responsibility through social contributions should be the first such step.