Anticancer drug developer biotech LigaChem Biosciences was selected as the first direct bio investment by the Public Growth Fund.
According to the Financial Supervisory Service's electronic disclosure system on the 26th, Korea Development Bank (KDB) held the Public Growth Fund's fund management deliberation committee the previous day and decided to take part in LigaChem Biosciences' new fundraising of 500 billion won.
Using a direct investment method by participating in LigaChem Biosciences' paid-in capital increase via convertible preferred shares (CPS) and issuance of convertible bonds (CB), the bank decided to invest 250 billion won using the Advanced Strategic Industry Fund.
The remaining 250 billion won is understood to be split evenly between the major shareholder Orion Group and domestic institutional investors. Orion earlier became the largest shareholder in 2024 by using PAN ORION.
LigaChem Biosciences is regarded as a biotech with an antibody-drug conjugate (ADC) platform technology. The newly raised funds are said to be used to acquire new technologies, including a next-generation ADC platform.
In particular, KDB's investment in LigaChem Biosciences is the Public Growth Fund's first direct investment in healthcare and is expected to serve as a starting signal for expanding policy finance support beyond deep tech into the bio sector.
Direct investments by the Public Growth Fund have so far focused on artificial intelligence (AI) chips, including Rebellions, Upstage and FuriosaAI.
At the fund management deliberation committee the previous day, KDB also decided to commit to a project fund for investing in the defense exporter LIG Defense&Aerospace (hereafter LIG D&A).
Specifically, 100 billion won from the Advanced Strategic Industry Fund will support a project fund in which the Advanced Strategic Industry Fund and private financial institutions will acquire 500 billion won in preferred shares to be newly issued by LIG D&A.
The funds are expected to be used to expand facilities that mass-produce Cheongung-II (surface-to-air missile) and L-SAM (long-range surface-to-air guided weapon), and as R&D expense for AI-based unmanned and autonomous system platforms.
The Financial Services Commission said, "It is significant in that it supports the strengthening of the domestic bio research and development value chain of promising corporations and the global expansion of K-bio, and contributes to expanding new growth engines for our economy."