Hyundai Heavy and Mirae Asset Join Hands to Foster Healthcare and Bio Ventures... Establish 34 Billion Won Fund

[Asia Economy Reporter Choi Dae-yeol] Hyundai Heavy Industries Holdings and Mirae Asset Group announced on the 10th that they will establish a 34 billion KRW fund to nurture promising venture companies in the digital healthcare and bio sectors.

Hyundai Heavy Industries Holdings and Mirae Asset Capital have formed the ‘Mirae Asset-Hyundai Heavy Industries Holdings New Growth Investment Association No. 1.’ Mirae Asset Securities, Mirae Asset Life Insurance, Daewoong Pharmaceutical, and the Asan Foundation, which operates Seoul Asan Medical Center, are also participating as investors. The fund’s operation period is 10 years.

With this fund, the two companies plan to invest in promising venture companies in digital healthcare fields such as telemedicine, digital therapeutics, and AI-based diagnostics, as well as in bio new drug development. Furthermore, they expect to contribute to revitalizing the venture ecosystem in this field and establishing an environment for new technology development through ventures and open innovation.

According to the Korea International Trade Association’s International Trade and Commerce Research Institute, the global digital healthcare market size is expected to grow from $106.3 billion (approximately 125 trillion KRW) in 2019 at an average annual rate of 29.5%, reaching $639.4 billion (approximately 750 trillion KRW) by 2026.

A Hyundai Heavy Industries Holdings official said, "The digital healthcare and bio sectors are markets with very high growth potential," adding, "Through the fund, we will nurture unicorn companies leading these fields and actively pioneer new business areas."

Since last year, Hyundai Heavy Industries Group has been increasing investments in new business areas utilizing smart technologies such as hydrogen, AI, and robotics. Investments in digital healthcare and bio sectors are also increasing. Hyundai Future Partners, Hyundai Heavy Industries Holdings’ investment-specialized subsidiary, acquired Mediplus Solution, a mobile healthcare solution company, together with the Asan Foundation in August. This company provides health management services to cancer and chronic disease patients based on a mobile application.