KIC and CBC Group Launch $230M Bio R&D Investment Platform to Support Korean Biotech Global Expansion

On March 23, Korea Investment Corporation (KIC), South Korea’s sovereign wealth fund, announced the establishment of a $230 million “Bio R&D Investment Platform” to support the global expansion of South Korean biotechnology companies. Qiao Capital, Asia’s largest asset management firm focused on healthcare investments, will serve as the general partner (GP) of the new platform.

KIC stated that the platform will make direct investments in Korean biotech companies expanding their overseas operations. This is also seen as KIC’s first clear move to support the globalization of domestic enterprises through an investment platform, following its long-standing focus on foreign asset investment and foreign exchange asset management.

As disclosed, KIC will contribute $150 million (approximately KRW 226 billion). Serving as both a limited partner (LP) and the platform operator, KIC will be responsible for operational tasks such as project screening and post-investment management. CB Capital will leverage its global network to facilitate connections with overseas resources, including establishing collaboration channels between South Korean biotech companies and local pharmaceutical firms.

Market participants believe that KIC’s choice to support domestic companies through a “platform” model reflects practical considerations at both the institutional and operational levels. In the past, KIC primarily invested in overseas assets because the funds under its management were denominated in foreign currencies. In 2023, KIC revised its investment guidelines to permit investments in overseas subsidiaries of Korean companies, thereby creating room for such investments.

As planned, KIC will leverage this platform to focus its investments on South Korean biotech companies with clear overseas expansion plans. One of KIC’s core strategies is to acquire equity stakes through strategic investments during the critical phase when these companies establish their overseas entities, aiming to become a significant shareholder and thereby lay the foundation for long-term returns.

Park Il-young, President of KIC, stated that the establishment of the platform holds significant importance and will provide Korean enterprises with more actionable opportunities to enter the global market. KIC will also continue to seek investment opportunities that enhance the competitiveness of global managers and Korean companies while maximizing synergies.

Meanwhile, KIC established a strategic investment team in 2024 to specialize in investing in overseas subsidiaries of Korean enterprises, and expanded and reorganized it into the Strategic Investment Office last year.