National Growth Fund to invest 500 billion won each in LigaChem Biosciences, LIG Defense&Aerospace — 1 trillion won total

The National Growth Fund will make equity investments of 500 billion won ($325 million) each in biotech firm LigaChem Biosciences and multilayer air-defense manufacturer LIG Defense&Aerospace, committing a combined 1 trillion won. It marks the fund's first direct equity investment in a biotech company.

The Financial Services Commission said Friday that its National Growth Fund Investment Review Committee approved the investments at a meeting held Thursday.

Financial authorities had announced at the second meeting of the National Growth Fund Strategy Committee in April that they would pursue support for next-generation biotech and vaccine facility construction as well as defense industry projects. The two investments are follow-up measures under that plan.

The National Growth Fund will invest 500 billion won in LigaChem Biosciences through an equity stake. The funds will support drug development based on the company's proprietary antibody-drug conjugate (ADC) platform technology. Of the total, 250 billion won will come from the Advanced Strategic Industries Fund, with the remainder provided by domestic institutional investors.

LigaChem Biosciences holds core "linker" technology that connects cancer cell-targeting antibodies with cell-death-inducing drugs. Since its first technology transfer for a breast cancer treatment in 2015, the company has accumulated 9.6 trillion won in export revenue. It currently has eight clinical trials underway for drug candidates, with its breast cancer treatment having entered Phase 3.

ADCs, which attach a drug directly to an antibody, are considered a next-generation anticancer therapy that overcomes the limitations of conventional cancer drugs by selectively targeting cancer cells rather than healthy ones, thereby minimizing side effects.

This marks the first time the National Growth Fund has made a direct equity investment in a biotech company. "Given that this is a company with strong technological capabilities, there was demand for an equity investment," a financial authority official said.

The National Growth Fund will also take an equity stake in LIG Defense&Aerospace, committing 500 billion won to a capital increase aimed at funding the mass production of the Cheongung-II and long-range surface-to-air missile (L-SAM) systems, as well as research and development in AI-based unmanned and autonomous systems.

LIG Defense&Aerospace plans to issue 500 billion won in new preferred shares to be acquired by the Advanced Strategic Industries Fund and private financial institutions through a project fund structure. IMM Investment and D Investment will serve as fund managers.

Through the investment, the Financial Services Commission aims to support the Korea Air and Missile Defense (KAMD) system while also generating broader economic benefits from the expanded missile defense production capacity.

The Cheongung-II has been deployed in the United Arab Emirates, where it has demonstrated a high interception rate, building a strong order backlog on the back of positive evaluations in the global market, officials said.

"Expanding production facilities and equipment investment at manufacturing sites in Gumi and Gimcheon is expected to create regional jobs and broaden the ecosystem across the entire value chain," a financial authority official said.

LIG Defense&Aerospace also plans to launch a 160 billion won "partner company special export guarantee program" in cooperation with the Korea Trade Insurance Corporation, and will contribute 5 billion won to a mutual-growth fund that provides consulting and other support to its partner firms.