The LG Group, often called the "bio academy," laid the foundation for today's K-bio industry. The research talent accumulated through drug development investments since the 1980s, along with their experience, fueled the biotech venture boom of the 2000s. LG alumni who started their own companies, including Alteogen Chairman Park Soon-jae and Legochem Biosciences CEO Kim Yong-ju, have become key figures leading Korea's bio industry today.
The first-generation biotech ventures founded by these pioneers share a common trait: technology-driven entrepreneurship. At the time, the typical model involved scientists with core and applied technologies launching companies based on their expertise, with founders playing an absolute role throughout the entire drug development process—from technology discovery to research strategy formulation.
Recently, however, the landscape has been changing. Korean biotechs have elevated their global standing through clinical-stage advances and large-scale licensing deals, and market demands have evolved accordingly. In the past, technological prowess alone could justify a company's valuation, but not anymore. Companies must now demonstrate concrete strategies—from post-licensing revenue structures to the potential of follow-on pipelines. This signifies that management has become just as important as technology.
The problem is that management systems suited to these changes have not been adequately established. Founders' influence has been gradually diminishing due to equity dilution from fundraising. Moreover, Korea's bio sector lacks active mergers and acquisitions, making natural generational transitions difficult. Ultimately, without evolving management systems internally, companies will struggle to avoid stagnation at the next stage of growth.
For this reason, it is necessary to cultivate management talent internally who understand the global competitive environment, or to flexibly embrace outside professionals with relevant expertise. Major companies such as Alteogen, Legochem Biosciences, and ABL Bio are already embracing such changes.
If the first-generation founders built the industry's foundation, the transition to professional management is essential for the next generation. Going forward, K-bio's competitiveness will depend as much on management capabilities to execute as on the technology itself.
