"World-Class Technology, But Capital and Structure Remain Issues"...Candid Critique of K-Bio [BIO USA]

Bio USA Highlights K-Bio's Growth

Overreliance on IPOs and Licensing Out Hinders Progress

While the Korean bio industry is being recognized for its technological prowess on the global stage, there has been a candid assessment that its rigid capital structure and uniform investment exit strategies are holding back further growth.

On the 23rd (local time), the "Korea Rising" session is being held at the San Diego Convention Center in the United States during the "2026 BIO International Convention" (BIO USA). Photo by joint press team

On the 23rd (local time) in San Diego, United States, for the first time ever, a session focused exclusively on the Korean bio industry was held at the "BIO International Convention (BIO USA) 2026." The session, titled "Korea Rising: Don’t Miss the Next Innovation Hub in Asia," featured panelists such as James Choi, Executive Vice President of Samsung Biologics; Lee Jaejoon, CEO of Ildong Pharmaceutical; Lee Sanghoon, CEO of ABL Bio; and Scott Dwyer, Executive Vice President and Head of Business Development at Boehringer Ingelheim.

The evaluation of the technological capabilities of the Korean bio industry was overwhelmingly positive. Hwang Jurie, Director of Public & International Affairs at the Korea Biotechnology Industry Organization (KoreaBIO), cited a McKinsey report, stating, "Korea has more than 3,000 pipelines, ranking first in the world in the number of pipelines per capita." Scott Dwyer, Executive Vice President at Boehringer Ingelheim, also remarked, "Korean companies possess the boldness and entrepreneurial spirit to venture into the development of innovative new drugs," adding, "Our signing of more than six major contracts with companies like Hanmi Pharmaceutical and Yuhan Corporation is based on trust in their technological capabilities."

However, there were continued criticisms regarding structural limitations. Kook Chanwoo, Chief Investment Officer (CIO) of KB Investment, pointed out, "Most investors in the Korean market prefer exits through Initial Public Offerings (IPOs) rather than mergers and acquisitions (M&A), which creates a gap in expectations with global capital." Lee Jaejoon, CEO of Ildong Pharmaceutical, noted, "The harsh reality is that 99% of domestic venture capital (VC) firms seek only the IPO process," adding, "Even when there are clean biotech firms with ‘first-in-class’ assets at the preclinical stage and no post-merger integration (PMI) burdens, investors insist solely on IPOs, leading to the collapse of more flexible M&A or partnership deals."

Ultimately, the consensus among the panelists was that fundamental changes are needed from companies, investors, and the government alike. Lee Jaejoon, CEO of Ildong Pharmaceutical, emphasized, "This is not an issue that can be solved by changing just one sector or a single policy," stressing, "All ecosystem members—including biotechs, investors, traditional pharmaceutical companies, and distribution networks—must move forward together to the next level." The panelists also agreed on the need to diversify business models, moving beyond the traditional reliance on licensing out, to include establishing U.S. subsidiaries, joint development, and M&A. Lee Sanghoon, CEO of ABL Bio, stated, "By establishing a local entity in the U.S., it is possible to simultaneously secure global clinical development talent, capital, and networks," and added, "The next five years must go beyond being satisfied with simple early-stage technology exports." He stressed, "It is time to demonstrate true globalization by discussing business models of a fundamentally different dimension from global big pharma and participating in joint development."

This content was produced with the assistance of AI translation services.