In 1979, LG Group established Lucky Central Research Institute with the support of the late Koo Cha-kyung, the group's second-generation chairman. At its founding, the institute mainly researched petrochemicals. In 1980, LG recruited the late Dr. Choi Nam-suk, a former researcher at the Korea Institute of Science and Technology (KIST), as director and set up Korea's first genetic engineering research division. At the time, domestic pharmaceutical companies were making money from generics. A seed of the bio industry was planted in Korea, then a wasteland for new drug development.
Dr. Choi led LG Chem's research and development (R&D) division for 15 years, instilling the DNA of new drug development. Every morning, he walked around the institute greeting researchers with "What's new?" He encouraged researchers not to be bound by the past but to pursue the new. In particular, he provided an environment in which juniors could conduct research freely without being constrained by R&D funding. That is why he is called the eternal boss of the "LG Group," the cradle of Korea's bio venture scene. The seeds Dr. Choi sowed have blossomed into notable domestic bio ventures including Alteogen, LigaChem Biosciences, Peptron, Orum Therapeutics, and Curocell.
Recently, Kim Yong-ju, CEO of LigaChem Biosciences and one of the elder figures of the "LG Group," stepped back into an advisory role, handing over leadership to Park Se-jin, the chief financial officer (CFO) who also hails from the "LG Group." Like Dr. Choi, former CEO Kim has long stressed the importance of R&D and talent development. In the lobby of the Daejeon headquarters hangs a clock set against a world map bearing the inscription, "New drug development is the only way to survive." He also made the bold decision to sell most of his stake in Orion to raise R&D funds.
Recently, controversy over inadequate disclosures by some companies has also put sound bio ventures in a difficult position. It is a regrettable situation, as the issue is spreading into broader distrust of K-bio. But bio, following semiconductors, is a path Korea must take as a future growth engine. More than ever, an environment and trust that allow companies to focus on R&D are needed, so that the legacy built by the "LG Group" does not go to waste.
