Chairman Lee Dong-geol of Korea Development Bank, left, holds an agreement signed with Chairman Won Kwang-yon of Korea Science Research Council for Science Technology on cooperation to create 90 bln won in fund to support the businesses related to drones, anti-cancer treatment and hydrogen batteries, among others. (Photo: KDB)

Korea Development Bank (KDB) and the National Research Council for Science Technology joined together to make 90 billion won in investments as seed money for businesses to develop technologies related to drones, anti-cancer treatments and hydrogen batteries, among others.

The KDB said on Nov. 20 that its investments in businesses focused on the development of those technologies, including Komemtec for hydrogen batteries, Thisis Engineering for drone, and GI Innovation for drug for proteins, altogether 13 firms.

If the investments made by policy-financing organizations were added to those made by KDB, they could easily top 90 billion won. KDB signed agreements with 25 policy-financing organizations before investing in those firms to facilitate the utilization of the new technologies developed by research institutions and at universities.

KDB officials said investors rarely come forward to make investments in companies set up to build businesses around those new technologies as they are too risky in the early stages. The policy-financing institutions made investments in those firms to get rid of the “death zone” - the early years - for businesses just launched.

KDB puts firms recommended by research institutions on its KDB “Next Round List” before recommending them to investors and considering them for its own investments. The state-run bank has been running the list for the past three years for the growth of venture capitals and to spur startups. The list recommended 53 firms so far this year and 13 of them got investments, which are being used to hire new employees and install the production facilities.

Komemtec has been putting 2 billion won in investments they got into the hydrogen battery production after successfully producing them domestically. It is preparing to supply them to global automakers to compete with Gore the only hydrogen battery maker so far, monopolizing the business.

The company is about to cut the price of batteries to around half of what competitors charge to secure market share in the early stages of its operation. The company has been producing high molecule membranes and supplying the industrial air filters to Korea Electric Power Co. and POSCO, among others.

Other companies that got investments include Thisis Engineering, which is to use the 7 billion won fund to further develop drone piloted with one hand; Wellmarker Bio is to put its 25 billion won investment to research into anti-cancer drugs, and Synteka Bio got 12 billion won in investments to further develop a platform for dielectric map growth. GI Innovation also received 17 billion won.

KDB officials said the total investments to turn technologies into businesses would be boosted to around 100 billion from 23 billion by 2022.

South Korea’s state-owned Korea Development Bank (KDB) is creating a 50 billion won ($45.2 million) fund with other state-invested organizations to help local startups and small- and mid-sized enterprises (SME) attract foreign investment and to tap overseas markets.

Korea Development Bank said on Aug. 30 it has signed a memorandum of understanding with Korea Institute for Advancement of Technology (KIAT), Korea Trade-Investment Promotion Agency (KOTRA) and Hanwha Investment & Securities to launch a fund worth 50 billion won designed to invest in promising startups and SMEs.

KDB and KIAT will each invest 10 billion won in the fund, while Hanwha Group affiliates including the brokerage will finance the remaining 30 billion won.

The new fund will invest in startups and SMEs with innovative and emerging technologies including those joining KDB’s startup incubation program Next Round.