Mirae Asset Venture Investment Co., the general partner (GP) of the government's ambitious K-Bio and Vaccine Fund, is reportedly returning its qualification after failing to attract investment for the fund, Money Today first reported on Friday.

"We have received an intention from Mirae Asset Venture Investment to return the GP position," a Ministry of Health and Welfare official told Money Today. "We will decide what action to take through an internal review."

Regarding the matter, industry watchers said the Ministry of Health and Welfare (MOHW) could impose administrative penalties against Mirae Asset Venture Investment, such as restricting eligibility to participate in government-funded projects for a year.

In July last year, the ministry decided to create the K-Bio-Vaccine Fund to revitalize investment in new drug development and vaccines, and selected Mirae Asset Venture Investment and Yuanta Investment Korea as the GPs of the fund in September last year.

The two funds each aimed to raise 250 billion won ($189.6 million), with 100 billion won from the government, 100 billion won from government-owned banks, and 300 billion won from private investment.

Yuanta Investment Korea, the other GP of the government's K-Bio and Vaccine Fund, has raised about 70 percent of the targeted fundraising amount of 250 billion won (about 175 billion won), but plans to reduce the size of the fund to form a fund first and continue to receive investment until September.

If the health and welfare ministry approves the Mirae Asset Venture Investment's dropping its GP role, the government will have to pick a new GP and come up with follow-up measures next month.

The government has extended the deadline for the fund's formation by another three months, to the end of September. This is the fourth postponement.

This pushes the target date for the fund's formation from the first half of this year to the second half.