S.Korea’s first-generation bio companies set up support fund for new ventures

South Korea's first-generation bio companies and Industrial Bank of Korea (IBK) have created a bio investment fund to support ventures in the field experiencing financial difficulty.

LegoChem Biosciences Inc., Alteogen Inc., Sugentech Inc., Peptron, Inc. and the bank on Thursday announced their launch of the IBK-Solidus Bio Investment Association and a fund of 23.5 billion won ($18 million) to be run by Solidus Investment. IBK invested 10 billion won, the four bio companies 8 billion won, Korea Investment & Securities 3 billion won, Solidus Investment 2 billion won and Chungnam National University Technology Holdings 500 million won.

“Given the difficult situation in the bio investment market, the launch of a bio fund led by first-generation bio companies is significant,” Solidus Investment CEO Kim Jeong-hyun said. “I hope that this is an opportunity to revive interest in bio investment in Korea.”

This fund offers not just capital investment but also expert consulting. The four companies will provide mentoring, checking and coordination of the business strategies of newer entities in the bio field.

"All four investor companies grew through venture capital investment, so we thought that we must do our part to overcome the crisis that bio companies are struggling in," LegoChem Biosciences CEO Kim Yong-zu said. "We will actively share our companies' growth strategies and know-how with younger companies."

Write to Yoo-Rim Kim at youforest@hankyung.com