BTGEN becomes 1st bio-firm to receive National Growth Fund support

BTGEN, formerly STGEN Bio, has become the first biopharma company selected for support under Korea’s National Growth Fund, securing an 85 billion won ($61.4 million) long-term, low-interest loan to expand its biosimilar contract manufacturing capacity in Songdo, Incheon.

BTGEN, formerly STGEN Bio, has become the first bio company selected for Korea’s National Growth Fund support, securing an 85 billion won long-term, low-interest loan to expand its biosimilar CDMO capacity in Songdo. (Credit: BTGEN)

The National Growth Fund’s fund management deliberation committee approved the loan for STGEN Bio on April 30. The company changed its name to BTGEN on May 1.

The National Growth Fund is a public-private financing program designed to support Korea’s advanced strategic industries, rather than a single collective investment fund. The program aims to supply 150 trillion won over five years across the advanced industry ecosystem, with 30 trillion won planned for 2026 alone. It combines 75 trillion won from the government-guaranteed Advanced Strategic Industry Fund with another 75 trillion won in private-sector and pension fund participation.

The fund targets sectors seen as future growth engines, including AI, semiconductors, bio and vaccines, robots, hydrogen, secondary batteries, displays, future mobility and defense. Its 2026 financing plan is divided into 3 trillion won in direct investment, 7 trillion won in indirect investment, 10 trillion won in infrastructure investment and lending, and 10 trillion won in low-interest loans.

The financing will support BTGEN’s project to expand drug substance and drug product manufacturing facilities for biosimilar contract production. BTGEN is a CDMO specializing in process development and contract manufacturing of antibody- and protein-based biologics.

The project will be carried out in the advanced industrial cluster in Songdo, Incheon, with a total project size of about 110 billion won. The 85 billion won loan will be provided as an eight-year long-term loan, including 65 billion won from the advanced industry fund and 20 billion won from Korea Development Bank’s own account. BTGEN will raise about 25 billion won on its own.

According to the fund, the investment is intended to help Korea respond preemptively to growing global demand for biosimilars by expanding domestic production capacity for drug substance and drug product manufacturing.

Once the expansion is completed, BTGEN’s maximum drug substance production capacity is expected to rise by 44 percent, while its maximum drug product production capacity is projected to increase by 170 percent.