Kookmin Bio, a company specializing in R&D of bio-health food and pharmaceutical materials, has attracted 3.4 billion won in Series B investment.

All diseases originate in the intestines. 80% of immune cells are found in the intestines. The academic community believes that diseases occur when the balance of beneficial and harmful bacteria in the gut is disrupted. Interest in intestinal health is increasing as research reports are being published one after another that link enteritis and atopic diseases, as well as various brain development disorders and diseases, including autism, to intestinal health.

Amid this, Kookmin Bio, a company specializing in the R&D of bio-health food and pharmaceutical materials, has attracted attention by attracting a Series B investment of 3.4 billion won recently, even amid a slump in investment. Some analysts say that the success of HEM Pharma, which has a similar business model, in listing on KOSDAQ on the 5th of this month has raised expectations for Kookmin Bio.

Meanwhile, Kookmin Bio, a company specializing in R&D of bio-health food and pharmaceutical materials, has attracted attention by attracting a Series B investment of 3.4 billion won recently, even amid the downturn in investment.

This investment was followed by follow-up investments from existing investors New Paradigm Investment and Korea Alternative Investment Asset Management, and the addition of K-Ground Ventures, the operator of Scale-Up TIPS, giving Kookmin Bio a strong backing. As a result, the cumulative amount of investment attracted exceeded 10 billion won.

KookminBio is a faculty startup company that started at Kookmin University. It is developing technology to regulate intestinal microorganisms through metabolites that are beneficial to the human body based on lactic acid bacteria and patented microorganisms isolated from Korean fermented foods such as galchi (cutlassfish) and saeu-jeot-gal (salted fermented shrimp), and ganari-ak-jeot (salted fermented anchovy). It is also developing health functional foods and bio-new drugs that are effective in improving muscle strength, treating sarcopenia, reducing body fat, and treating abdominal obesity.

Baesang Lee, CEO of New Paradigm Investment, has shown firm trust in the company by investing in it four times in a row, from pre-series A to series B. When asked why he invested in the company, he summed it up in three reasons.

First, he pointed out that the company is laying the foundation for stable growth. Kookmin Bio aims to receive approval from the Ministry of Food and Drug Safety for its functional dry food ingredients, which are effective in improving muscle strength and reducing body fat, early next year, starting with the development and distribution of 'Yakgongdooyu'. It plans to apply for this as an excellent procurement item to the Public Procurement Service and supply it to domestic and overseas dietary supplement sellers to achieve sales worth 7 billion won next year.

“Kookmin Bio is not aiming to become an innovative new drug at once, but is aiming for a step-by-step R&D roadmap that includes sales,” said Bae. He went on to say, “The technology-specific listing has become much stricter than in the past, and now it is difficult to list unless the company grows by generating sales and profits,” and “rather than approaching innovative new drugs directly, it is advantageous to list by achieving a mid- to long-term vision based on items that allow the company to continue to develop its business, and Kookmin Bio is going in that direction.”

He also cited the recent listing of HEM Pharma, which is engaged in a similar business, as an investment factor. “HEM Pharma is a company that operates a platform service that analyzes the intestinal microbial environment, and is developing a business in the same area as Kookmin Bio,” said Bae. ”It is true that we expect that this will revive investor sentiment and continue the positive atmosphere for listing.”

The fact that Sung Moon-hee (67), the CEO of Kookmin Bio, is a serial entrepreneur who has successfully exited through listing and sale after founding the company, and an expert who has been active in the field of bio and health food ingredients for 45 years, also contributed to the investment.

“This is Sung's second startup, and he has experience in listing his first startup, BioLeaders, on KOSDAQ, and he is also a master who has pioneered and walked the path of research on bio-health food and pharmaceutical materials for 45 years, which had a significant impact on the investment decision,” said Bae.

After receiving a PhD in microbiology and biochemistry from Kyoto University in Japan, Sung worked as a senior researcher at the Korea Research Institute of Bioscience and Biotechnology. Since 2003, he has been a professor at the Department of Biofermentation Convergence at Kookmin University, where he has mainly studied the microbiome. He has served as the president of the Korean Society for Microbiology and Biotechnology and has been awarded the 47th Jang Young-sil Award, the Science and Technology Medal, and the Leapfrog Award.

Kookmin Bio will use the investment to advance its microbiome regulation platform and expand its health functional food business. It plans to challenge the listing of its technology-specific KOSDAQ in 2027.