Venture capital investment in the biotech and healthcare sector reached its highest level in four years in 2024, signaling that Korea's biotech industry has emerged from its prolonged slump and entered a full recovery phase.
According to the Korea Venture Capital Association on March 3, new investment in the biotech and healthcare sector totaled 1.19 trillion won ($830 million) last year, up 11.2% from 1.07 trillion won in 2023. This marks the highest level since 2021, when investment peaked at 1.68 trillion won amid the COVID-19 boom. The sector accounted for 17.5% of total venture investment, second only to ICT services at 28.3%.
Total venture investment in biotech and healthcare, including follow-on funding, rose 29.1% to 2.37 trillion won from 1.84 trillion won in 2023. The 534 billion won increase represented the largest growth among all sectors.
New biotech investment had declined steadily after the 2021 peak, falling to 1.11 trillion won in 2022 and 884.4 billion won in 2023 as global interest rate hikes dampened investor appetite. The sector began recovering in 2023 with a 20.9% year-over-year increase, and the upward trend accelerated last year.
However, the investment surge was concentrated in select companies with proven track records rather than broad-based growth. Funds flowed primarily to firms that had secured technology licensing deals and other tangible results, with pre-IPO "blockbuster" biotech companies attracting the bulk of capital.
"Large-scale investments have been 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 funding spreads to early-stage ventures through a trickle-down effect, enabling balanced growth across the entire industry."