April Bio completed a 340 billion won third-party capital increase with a consortium led by IMM Investment and TKG Huchemicals on the 23rd, one month after signing the stock purchase agreement on the 23rd of last month. TKG Huchemicals invested approximately 150 billion won to secure management control through a board majority and holds a call option to acquire IMM's stake. The transaction reflects a wave of management rights deals in South Korean biotech companies, driven by strategic investors and private equity funds betting on long-term growth potential, including strong research talent and global scalability. This structure prioritizes funding for research and clinical development while maintaining the independence of existing research organizations, diverging from traditional buyout models focused on short-term cost efficiency. The deal follows a pattern where strategic investors with limited direct ties to biotech are selecting these companies as new growth engines, as TKG Group — originating in footwear manufacturing — expands its portfolio into precision chemicals, materials, semiconductors, and now biotechnology.
TKG Huchemicals Secures April Bio Management Control with Board Majority
According to investment banking industry sources on the 24th, April Bio finalized the 340 billion won third-party capital increase with IMM Investment and TKG Huchemicals consortium on the 23rd. The deal closed within one month of the stock purchase agreement signed on the 23rd of last month, with investment funds fully paid. IMM Asset Management, an affiliate of IMM Investment, holds the largest shareholder position, but TKG Huchemicals will exercise management rights. TKG Huchemicals invested approximately 150 billion won to acquire its stake in April Bio and secured control by appointing three of five board members. The company also holds a call option to acquire IMM's stake in the future.
The transaction draws attention because a strategic investor with limited direct ties to the existing business selected a biotech company as a new growth engine. TKG Group, originating as a footwear development and manufacturing company, identified April Bio while expanding its business portfolio into precision chemicals, materials, and semiconductors. The deal takes the form of a buyout with a private equity fund partner but differs from traditional transactions that boost profitability in the short term through management replacement, workforce efficiency, and cost reduction. The focus is on supplying large-scale funding needed for research and development and clinical trials, while maintaining the expertise and independence of the existing research organization. TKG Huchemicals will provide financial resources and management expertise while supporting April Bio's existing research team to continue work on drug candidates and platform research.
Orion Maintained Legochem Biosciences Research Team After 2024 Acquisition
The transaction is compared to Orion's acquisition of Legochem Biosciences in 2024. Orion invested 540 billion won to secure a 25% stake in Legochem Biosciences and became the largest shareholder, but retained CEO Kim Yong-ju along with the existing management team, research organization, and operational system. Low founder ownership in biotech companies also facilitates such transactions. Many drug development companies have reduced founder ownership through venture capital investments and capital increases. An industry official from the private equity fund sector explained that when a company needs hundreds of billions of won to grow, founders may choose to transfer management rights if it increases the overall value of the company.
CBC Group and KIC Form 450 Billion Won Fund for Korean Biotech IP Licensing
Global capital betting on the long-term growth potential of South Korean biotech is also flowing in. CBC Group, a global healthcare-focused asset management firm, is forming a 450 billion won fund with Korea Investment Corporation (KIC) for domestic biotech investments. CBC is known for acquiring South Korean medical aesthetics company Hugel in 2021 through a consortium with GS Group and IMM Investment. CBC plans to secure individual drug intellectual property rights in Phase 1 and 2 clinical stages held by domestic biotech companies through licensing, and pursue global commercialization through operating entities under the fund.
An investment industry official stated that while domestic biotech companies previously focused on transferring technology at early clinical stages, the pattern has recently changed. As more companies continue research and development through the commercialization stage, they are accepting external capital, reflecting the maturation process of the South Korean biotech industry.
FAQ
What did TKG Huchemicals acquire from April Bio on the 23rd?
TKG Huchemicals invested approximately 150 billion won to acquire a stake in April Bio and secured management control by appointing three of five board members, completing the transaction on the 23rd.
How does the April Bio transaction differ from traditional private equity buyouts?
The transaction focuses on supplying large-scale funding for research and clinical trials while maintaining the expertise and independence of the existing research organization, rather than pursuing short-term profitability through management replacement and cost reduction.
What fund are CBC Group and Korea Investment Corporation forming?
CBC Group and Korea Investment Corporation are forming a 450 billion won fund to secure intellectual property rights of Phase 1 and 2 clinical stage drugs from domestic biotech companies through licensing and pursue global commercialization.
