National Growth Fund Invests 1 Trillion Won in K-Bio and Defense Industries

The National Growth Fund will invest 500 billion won each in leading domestic bio company Rigacare Bioscience and defense firm LIG Defense and Aerospace (LIG D&A). This investment aims to secure future growth engines through substantial funding for national strategic industries such as bio and defense.

On June 26, the Financial Services Commission announced that the fund's investment committee approved direct equity investment in Rigacare Bioscience and a project fund investment in LIG D&A during a meeting held the previous day.

In April, the Financial Services Commission had previously stated its intention to support 'next-generation bio and vaccine facility construction' and 'defense projects' during the second meeting of its advisory committee for the National Growth Fund.

With this latest approval, the cumulative financial support from the National Growth Fund has increased to a total of 21 cases, amounting to 14.6 trillion won, with regional investments accounting for 46.4% of the total.

The investment in Rigacare Bioscience will support research and development (R&D) for new drug development based on antibody-drug conjugate (ADC) platform technology, which involves attaching potent anticancer agents to antibodies that target cancer cells for selective treatment.

Of the total required funding of 500 billion won, the National Growth Fund will contribute 250 billion won through the Advanced Strategic Industry Fund, while the remaining 250 billion won will be covered by major shareholders and domestic institutional investors.

The Financial Services Commission explained that this investment is significant as it strengthens the domestic bio R&D value chain for promising companies and supports the global expansion of K-Bio, contributing to the enhancement of new growth engines for the economy.

In the defense sector, a project fund involving the Advanced Strategic Industry Fund and private financial institutions will acquire 500 billion won worth of preferred shares issued by LIG D&A. The Advanced Strategic Industry Fund will invest 100 billion won of this amount.

The raised funds will be used for expanding production facilities for the Cheongung II surface-to-air missile and long-range surface-to-air guided weapons (L-SAM), as well as for R&D of AI-based unmanned and autonomous systems platforms.

Additionally, LIG D&A plans to use the funds secured this time, along with an additional 2 trillion won in self-investment over the next five years, to expand air defense system production facilities in Gumi and Gimcheon, and to establish R&D in unmanned and space sectors, as well as domestic and international maintenance, repair, and overhaul (MRO) centers.