'Korea’s IPO-driven biotech sector offers prime entry point for global VCs'
Global venture capital (VC) firms seeking new growth avenues should closely examine Korea's dynamic biotech sector, which continues to offer robust IPO-driven opportunities, according to Moon Yeo-jung, senior managing director of IMM Investment, during the 2025 KDDF Global Biotech Showcase held at the Fairmont Ambassador Seoul on Tuesday.
Sponsored by the Korea Drug Development Fund (KDDF), the event aimed to invigorate Korea’s new drug development ecosystem through direct meetings between biotech companies and investors.
Moon, representing IMM Investment, one of Korea’s largest independent VC firms managing over $6.6 billion, highlighted Korea’s distinctive investment landscape and significant government backing.
In 2024 alone, over $1.35 billion was invested into 323 biotech companies, making biotech the second-largest VC sector in Korea, according to Moon.
The uniqueness of Korea's biotech sector lies in its IPO-driven exit market, which differs significantly from Western markets where mergers and acquisitions (M&A) are common.
"Most exits are IPO-driven, meaning companies must prepare early for public markets," she explained. "Founders typically must hold at least 20 percent ownership for a successful IPO in Korea."
Despite historically high valuations, Moon noted that a recent market correction is creating more attractive entry points.
"Series A valuations this year are nearly half of what they were previously,” she said. “If you're waiting for the right moment, now is the time.”
