National Growth Fund Approves 1 Trillion Won Investment in Bio and Defense Sectors

South Korea's National Growth Fund has greenlit substantial investments, approving a total of 1 trillion won for two key companies: Ligachem Bio and LIG Defense & Aerospace (LIG D&A).

Ligachem Bio will receive 500 billion won to advance its proprietary antibody-drug conjugate (ADC) platform technology. This funding will support new drug development, clinical trials, and commercialization efforts. The ADC technology targets cancer cells specifically by attaching anti-cancer drugs to antibodies, offering a more precise treatment approach. Since 2015, Ligachem Bio has successfully transferred its technology to several international biotech firms, securing deals worth 9.6 trillion won, and is currently involved in eight global clinical trials.

LIG D&A, formerly LIG Nex1, will also receive 500 billion won through the purchase of its convertible preferred shares by a project fund involving the National Growth Fund and private financial institutions. This investment will be used to expand production facilities for crucial defense systems like the Cheongung-II missile and the L-SAM (Long-range Surface-to-Air Missile). Additionally, the funds will support research and development in AI-based unmanned and autonomous systems. LIG D&A plans to enhance production sites in Gumi and Gimcheon, Gyeongsangbuk-do, and establish domestic and international after-sales service centers.

These investments are part of a broader strategy to bolster South Korea's capabilities in advanced strategic industries. LIG D&A will also pursue a 160 billion won special export guarantee program with the Korea Trade Insurance Corporation and establish a 5 billion won mutual growth fund to support its partner companies. Including these approvals, the National Growth Fund's total investment commitments for the year have reached 14.6 trillion won across 21 cases.