500 billion won in K-Bio and Vaccine Fund was created

Expanded to 1 trillion won

The MOHW has decided to select an operator

The government has finalized a plan to create a K-Bio and Vaccine Fund" worth a total of 500 billion won this year and has started selecting operators.

 

In the future, the government plans to expand the scale to around 1 trillion won.

 

The MOHW (first vice minister Cho Kyu-hong) announced on the 4th that it will report and confirm the plan to create a K-bio and vaccine fund at the emergency economic welfare meeting on July 27 and launch a public offering for the fund formation as a follow-up measure.

 

To form the fund, the MOHW will announce the selection of operators to operate the fund through Korea Venture Investment from the 4th to 2 p.m.

 

on the 26th, and hold a briefing session for fund managers online and offline on the 9th to guide them in detail.

 

Looking at the purpose and plan of fund creation, the K-Bio and Vaccine Fund is designed to develop new global innovation drugs for domestic pharmaceutical companies, enhance competitiveness in the vaccine industry, and enter the global pharmaceutical and bio markets.

 

The MOHW explained that the market size of domestic pharmaceutical and bio companies, new drug development pipelines and technology exports have been increasing significantly recently, and that there is a growing appeal that there is a lack of funds needed.

 

The government predicted that the demand for funding will increase as domestic vaccine and therapeutic agent companies have investment plans such as production facilities worth about 13 trillion won by 2026.

 

In fact, Samsung BioLogics is planned to have 8.74 trillion won, Lotte Biologics 1 trillion won, SK Bioscience 500 billion won, EuBiologics 101.5 billion won, and Amicogen 876 billion won.

 

The K-Bio Vaccine Fund will be created with a total of 500 billion won, including 100 billion won in government investment, 100 billion won in government-run banks (Korea Development Bank, Export-Import Bank, and Industrial Bank) and 300 billion won in private investment.

 

Among them, 50 billion won in government budgets and 50 billion won in existing fund profits, 45 billion won in KDB Development Bank, 30 billion won in Export-Import Bank of Korea and 25 billion won in IBK Industrial Bank of Korea will be invested.

 

The fund's main investment targets are domestic pharmaceutical and bio companies (more than 60% of the total investment) and domestic vaccine companies (vaccine and vaccine raw materials and equipment-related companies, 15%), which can invest in late clinical trials that require large amounts of funds to create successful global innovative new drugs in Korea.

 

Two funds worth 250 billion won will be created to quickly achieve the fund's target and investment will be initiated, and two operators will be selected.

 

The selected operator operates the fund for eight years from the date of establishment of the fund, sets the base return (IRR) at 7%, and allows Fast-Closing to promote rapid investment execution after forming the fund.

 

The K-Bio and Vaccine Fund management companies selected through the management company contest and the selection process in September will raise private investment funds to complete the formation of the fund within the year and conduct full-scale investment from the end of the year.

 

Lee Ki-il, the second vice minister, said, "We plan to expand to 1 trillion won in the future starting with 500 billion won this year." He said, "I hope this fund will serve as an opportunity to revitalize the bio-health industry, and I hope to create cases of developing innovative new drugs in Korea and leap into a world-centered country in the pharmaceutical and bio sectors."