Ontario, S.Korea VC firm to establish $76 mn healthcare fund

Canada's Ontario government has joined hands with a South Korean venture capital firm to establish a fund of 100 million Canadian dollars ($75.6 million) for investments in the healthcare sector.

LSK Investment based in Seoul said on Tuesday that the firm and the Government of Ontario agreed to each raise 50 million Canadian dollars for the life science venture capital fund. The fund was the first one to be jointly raised by a South Korean venture capital firm and a local government of Canada.

The Ontario government and LSK aim to establish the fund by the first half of 2024 to invest in startups for new drugs in both South Korea and the east-central Canadian province.

“Canada’s federal government and companies plan to invest in the fund,” said LSK CEO Kim Myung Kee. “In South Korea, we are working on attracting central and local authorities, as well as domestic companies.”

Ontario Minister of Economic Development, Job Creation and Trade Victor Fedeli told reporters in Seoul that the municipal government plans to actively support startups, in which South Korea and Ontario invest, to supply medicines to markets in a timely manner.

TO HELP HEALTHCARE STARTUPS MAKE INROADS INTO US, ASIA

Ontario, home to Canada’s capital Ottawa, is a hub for the bio and healthcare industries in North America along with Boston, Massachusetts, and San Diego, California.

The sectors made up 13% of Ontario’s gross domestic product with some 70,000 working for about 1,900 companies in the industries.

Global pharmaceutical and biotechnology companies such as AstraZeneca plc and Moderna Inc. announced investment plans in Ontario earlier this year.

“Ontario plays a role as a bridgehead for entering the US market as the province borders the country,” LSK’s Kim said.

“We aim to help South Korean companies make inroads into the US with cooperation with the local government while supporting companies in Ontario to start businesses in Asia through South Korea.”

LSK focuses on investments in healthcare sectors such as chemical drugs and medical devices.

Write to Woo-Sang Lee at idol@hankyung.com
 
Jongwoo Cheon edited this article.