Korea to invest $102m in life science start-ups

According to a statement, the initiative backed by the Small & Medium Business Administration and the Ministry of Trade seeks to help entrepreneurs attract Series A funding rounds by supporting industry and academia-linked R&D programs. It will aim to improve a relatively low commercialization rate among domestic biotechnology companies and reduce barriers to start-up creation in the sector. 

The plan is expected to result in the creation of specialized incubators and support hospital-based research groups. This effort will encompass the provision of both intellectual and physical resources, including laboratory space. Clinical and non-clinical trials as well as license acquisition procedures throughout the development period for medical devices will likewise be facilitated. 

Korean biotechnology has attracted investment as recently as January, with Israeli venture capital firm Yozma Group committing KRW50 billion to the sector via a fund formed alongside KOSDAQ-listed Daesung Private Equity. It represented part of a KRW120 billion multi-manager vehicle led by state-owned Korea Development Bank.

Last year, the Korea Scientists & Engineers Mutual-aid Association said it planned to invest half of its KRW300 billion overseas allocation in private equity with a focus on biotechnology. Meanwhile, Seoul-based bio pharmaceutical company G-treeBNT attracted a $7.3 million investment led by domestic healthcare-focused VC InterVest.

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• Topics
• North Asia
• Healthcare
• Technology
• Early-stage
• South Korea
• Venture
• Pharmaceuticals