Ministry of Health and Welfare Establishes 100 Billion KRW Fund to Support K-Bio's Overseas Expansion
[Asia Economy Reporter Cho Hyun-ui] On the 27th, the Ministry of Health and Welfare announced plans to establish a fund worth 100 billion KRW to expand investment in domestic biohealth companies that are attracting global attention due to the novel coronavirus infection (COVID-19) crisis. This is to enhance international competitiveness and expand entry into global overseas markets.
The Ministry of Health and Welfare plans to announce the selection of a fund management company to operate the fund through Korea Venture Investment Corp. and the Export-Import Bank of Korea from the 28th of this month until the 20th of next month. The fund management company will be selected in June, and the fund formation is expected to be completed as early as September or by the end of the year at the latest.
Since 2013, the Ministry of Health and Welfare has invested 80 billion KRW to foster the domestic biohealth industry and support overseas expansion, creating and operating a total fund worth 435 billion KRW. Through this, companies with technological capabilities but facing difficulties in attracting investment have been discovered, producing numerous success stories. Although no biohealth fund has been fully liquidated yet due to 4 years of investment and 8 years of operation, achievements include recovering 51 billion KRW of investment funds to date.
The newly planned fund will use the recovered investment funds (15 billion KRW) and 25 billion KRW in capital from the Export-Import Bank as initial capital, and will raise private investors to form a total fund of 100 billion KRW.
The Ministry of Health and Welfare plans to unify the five funds currently established and operated under the name "K-BIO New Growth Fund," and the new fund will be named "K-BIO New Growth Fund No. 6."
Hot Picks Today
"Only Two Per Person" Garbage Bag Crisis Was Just Yesterday... Japan Also Faces Shortage Anxiety
- "Samsung Electronics Employee with 100 Million Won Salary Receiving 600 Million Won Bonus... Estimated Tax Revealed"
- Lived as Family for Over 30 Years... Daughter-in-Law Cast Aside After Husband's Death
- 'Will Demand Finally Decline Due to High Prices?'... "I'll Just Enjoy Nearby Trips" as Japan and China See a Surge
- "Wore It Once, Then This? White Spots All Over 4.15 Million Won Prada Jacket... 'Full Refund Ordered'"
Im Eul-gi, Overseas Medical Business Support Officer at the Ministry of Health and Welfare, stated, "Although there are concerns about a global economic downturn due to COVID-19, it can be an opportunity for Korea's biohealth industry, which is attracting worldwide attention. We hope that K-BIO New Growth Fund No. 6 will be effectively utilized by companies with excellent technology but lacking capital."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
