LigaChem Biosciences Secures $357 Million From Korea National Growth Fund in First Direct Investment in Biotech Sector

LigaChem Biosciences, a Korean biopharmaceutical company specializing in ADC (antibody-drug conjugate) development, has raised KRW 500 billion (approximately $357 million) in direct equity investment from the Korea National Growth Fund. This marks the first time the government-led policy fund has invested directly in a publicly listed company, and the first direct investment in a biotech firm.

The investment is structured as KRW 170 billion in convertible bonds and KRW 330 billion in convertible preferred shares, both with a 10-year maturity. Half of the total came from the Advanced Strategic Industry Fund managed by Korea Development Bank, with the remainder contributed by majority shareholder Pan-Orion and domestic institutional investors through a third-party allocation. The issuance price was determined according to capital market regulations without discount, and conversion rights become exercisable 24 months after issuance.

The Korea National Growth Fund is a policy finance program designed to foster advanced strategic industries. It combines KRW 75 trillion from the Advanced Strategic Industry Fund with an equal amount of private capital, reaching a total scale of KRW 150 trillion.

LigaChem Biosciences plans to channel the proceeds into R&D and clinical development rather than M&A activities. The company aims to build in-house capacity for conducting late-stage clinical trials—Phase 2 and 3—for key pipeline assets, while securing next-generation ADC platforms as future growth drivers. The company will maintain its existing licensing-out strategy while adding the option to advance high-value core assets through later-stage trials independently.