Mirae Asset and Yuanta to Manage 500 Billion KRW 'K Bio Vaccine Fund'

Mirae Asset Venture Investment and Yuanta Investment
Each Raise 250 Billion KRW

[Asia Economy Reporter Kim Young-won] The government has finalized the asset management companies to carry out investments for the 'K-Bio Vaccine Fund,' established to support the development of innovative new drugs and vaccines.

On the 28th, the Ministry of Health and Welfare announced that Mirae Asset Venture Investment (jointly operated with Mirae Asset Capital) and Yuanta Investment were selected as the fund's asset managers. Each management company plans to raise and operate a total of 500 billion KRW, with 250 billion KRW each.

As a result of the public offering for asset managers conducted by Korea Venture Investment, the fund management institution, from the 4th to the 26th of last month, Mirae Asset Venture Investment and Yuanta Investment applied and were finally selected after the first screening, on-site inspection, and investment review meeting.

The K-Bio Vaccine Fund is a fund established with initial capital contributed by the Ministry of Health and Welfare and national policy banks, aiming to create world-class success cases of innovative new drug development in Korea and secure vaccine sovereignty. The asset managers will invest at least 60% of the total raised amount in companies conducting clinical trials for new drug and vaccine development, and at least 15% in vaccine companies.

To raise this fund, the Ministry of Health and Welfare contributed 100 billion KRW, combining this year's budget of 50 billion KRW and 50 billion KRW from the recovery of existing funds, and three national policy banks?the Korea Development Bank, Export-Import Bank of Korea, and Industrial Bank of Korea?also contributed a total of 100 billion KRW.

Mirae Asset Venture Investment, selected as an asset manager, will contribute 25 billion KRW, and Yuanta Investment will contribute 20 billion KRW. After the final approval process by the three jointly contributing national policy banks, the fund will be raised through recruiting private investors.

Kim Hyun-jun, head of the Ministry of Health and Welfare's Global Vaccine Hub Promotion Team, stated, "Through the K-Bio Vaccine Fund, we hope pharmaceutical companies with promising new drug development pipelines receive timely investments to complete new drug development successfully," adding, "We plan to expand the fund up to 1 trillion KRW in the future."

This content was produced with the assistance of AI translation services.