Ministry of Health and Welfare Prepares K-Bio Vaccine Fund Restructuring Plan... Announcement of Asset Manager Selection in Early August

The Ministry of Health and Welfare is preparing a restructuring plan for the K-Bio Vaccine Fund and will announce a public notice for the selection of a management company in early next month.

On the 25th, Park Min-su, the 2nd Vice Minister of the Ministry of Health and Welfare, stated this at the 'K-Bio Vaccine Fund Formation Strategy Advisory Meeting' held in the large conference room on the 3rd floor of Seoul Square.

At the meeting, the current status of the pharmaceutical and bio investment market and strategic measures for the successful formation of the K-Bio Vaccine Fund were discussed.

Last July, the Ministry of Health and Welfare announced the establishment of the 1 trillion won-scale ‘K-Bio Vaccine Fund’ through the 4th Emergency Economic and Livelihood Meeting (presided over by the President) to promote innovative new drug development and secure vaccine sovereignty. The government initially pushed for the formation of a fund worth about 500 billion won through 100 billion won in government contributions and 100 billion won from policy banks.

At the end of September, the Ministry selected Yuanta Investment and Mirae Asset Venture Investment (jointly with Mirae Asset Capital) to form two funds worth 250 billion won each and began fund formation. However, Mirae Asset Venture Investment returned its qualification as a fund manager at the end of last month.

Private experts expressed the opinion that, in response to the decline in investments in bio ventures due to sustained high interest rates, it is necessary to promptly form and start investing in the K-Bio Vaccine Fund. They also voiced the need for flexible adjustments regarding the fund size, fund formation method, and primary investment scope.

Vice Minister Park Min-su said, "Amid the contraction of investment sentiment, the government and policy financial institutions must play an active role in fund formation, thereby serving as a catalyst for private investment."

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