Venture capital investment in Korea's biotech and medical sector reached its highest level in four years in 2025, signaling the industry has emerged from its prolonged slump and entered a full recovery phase.
New VC investments in biotech and medical companies totaled 1.19 trillion won ($830 million) last year, up 11.2% from 1.07 trillion won in 2024, according to data released Monday by the Korea Venture Capital Association. This marks the highest level since 2021, when the sector peaked at 1.68 trillion won during the COVID-19 boom.
The biotech and medical sector accounted for 17.5% of total venture investment, ranking second only to ICT services at 28.3%.
Total venture investment in the sector, including follow-on funding, showed even stronger growth. The figure reached 2.37 trillion won last year, surging 29.1% from 1.84 trillion won in 2024. The 534 billion won increase represented the largest gain among all industries.
The sector had been on a downward trajectory since its 2021 peak. Global interest rate hikes pushed investment down to 1.11 trillion won in 2022, followed by a further decline to 884.4 billion won in 2023.
The turnaround began in 2024, when new investment rose 20.9% year-over-year. Last year's figures confirmed the recovery trend has gained momentum.
However, the investment surge was driven by capital concentration in proven performers rather than broader market participation. Funds flowed primarily to companies with tangible results such as technology licensing deals, rather than an increase in the number of investee companies. Pre-IPO biotech firms with established licensing track records attracted the bulk of selective investments.
"Large-scale investments concentrated in biotech companies with high exit potential," said Lee Seung-kyu, vice chairman of the Korea Biotechnology Industry Organization. "We need to create a structure where capital spreads to early-stage ventures through a trickle-down effect, enabling balanced growth across the entire industry."