The government said it would create 100 billion won ($81.3 million) fund to help Korean biotech and health industries expand business in the global markets, amid growing attention to domestic companies fighting the new coronavirus.
The Ministry of Health and Welfare said on Monday the new fund would aim to attract foreign investment into local bio/health companies to enhance their competitiveness and expand their business overseas.
The ministry has invested 80 billion won to operate 435 billion funds since 2013 to nurture the local bio/health industry and help them enter foreign markets. With the funds, the government discovered companies with technological power that suffered from a lack of investment and helped them pull off successful cases.
Under the four-year investment and eight-year operation plan, the government has not liquidated any bio/health fund yet. However, the government has recovered 51 billion won investment fund so far.
For the new upcoming fund, the government will attract private investors to raise 100 billion won, based on the 15 billion won from the recovered investment fund and 25 billion won investment from the Export-Import Bank of Korea.
The health and welfare ministry said it would also unify the name of the five funds as “K-BIO New Growth Fund.” Thus, the upcoming fund will be named “K-BIO New Growth Fund No. 6.”
To form the new fund, the health and welfare ministry plans to put a public notice to select a fund manager through Korea Venture Investment Corp. and Eximbank Korea.
The government hopes to select the fund manager by June and complete the forming of the fund by September or the end of the year.
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