South Korean venture capital companies turn their eyes to promising biotech firms overseas, looking for a vehicle to accelerate their investment goals.

KTB Network recently joined hands with three Chinese venture capital companies to invest a total of 36 billion won ($30.1 million) in the country’s biopharma company CARsgen Therapeutics. The biotech company is highly praised for its immune cell therapy platform. It is working on a new method to treat patients with glioblastoma and hepatocellular carcinoma with a goal to conduct a clinical trial next year.

Korea Investment Partners, DSC Investment and Mirae Asset Venture Investment teamed up to invest a total of 12 billion won into Israel-based drug developer KAHR Medical. KAHR Medical’s key business application is immuno-oncology. It is said to hold strong potential for growth with a Non-Hodgkin lymphoma drug.

According to sources on Friday, Korea Investment Partners, the country’s largest venture capital firm, is raising an up to 100 billion won blind pool fund in cooperation with domestic institutional investors to capitalize on the hot biotech market. The fund’s target includes some domestic firms that want to expand business into global markets.

Korea Investment Partners invested 111 billion won into overseas companies during last year alone, which represented 43 percent of its total investment. One of its picks is Elastagen, a Sydney-based, clinical stage medical company developing technology to repair damaged skin. The company draws attention after news reports it will go public in Korea next year.

LBInvestment, another Korean venture capital company that has focused on the Chinese market, was recently selected as a commissioned asset manager of Global Expansion Fund being raised by the Korea Development Bank to invest into overseas startups. The investment period lasts four years and the fund size is 81.5 billion won. Besides KDB, Employment Insurance, National Pension Service, Military Mutual Aid Association and Public Officials Benefit Association have chipped in.

The local venture capital community keeps upping the ante on overseas markets to look for new channels for profit and diversify investment portfolio, an unnamed official at a Korea-based venture capital said. “To ensure successful investment, it is crucial to screen and select promising startups with robust technology.”

By Song Gwang-seop

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