Lotte Holdings Launches Healthcare CVC to Invest in Global Biopharma Startups

Lotte Holdings, a South Korean multinational conglomerate, has launched a corporate venture capital (CVC) fund focused on the healthcare and biopharmaceutical sectors. The fund will invest in startups globally across all stages, although the exact size of the fund has not been disclosed.

The new CVC arm aims to back companies specializing in biopharmaceuticals and next-generation modalities. This initiative marks a strategic expansion for Lotte Holdings as it strengthens its presence in the rapidly evolving healthcare and biotech markets.

Lotte Group ventured into the pharmaceutical sector in 2022 by establishing Lotte Biologics, a Contract Development and Manufacturing Organization (CDMO) specializing in drug development and manufacturing. Headquartered in Seoul, South Korea, Lotte Biologics operates a facility in Syracuse, New York, for biopharmaceutical antibody production and is also planning to build a comprehensive ADC (Antibody-Drug Conjugate) service platform. The company aims to complete a 360kL bio-campus in the Songdo area of Incheon, South Korea, by the end of 2030.

The new healthcare-focused CVC will gather innovative insights and accelerate access to new technologies by investing in promising startups worldwide. 

Lotte Holdings’ expansion into healthcare is complemented by its existing venture capital activities through Lotte Ventures, its corporate venture unit previously known as Lotte Accelerator. This unit invests across various sectors, including retail, hospitality, and electronics, aligning with the group’s philosophy of enriching people’s lives by providing superior products and services.

Lotte Group, which started as a family business selling chewing gum in 1948, has since grown into a conglomerate with over 90 businesses spanning various industries such as confectionery, hotels, chemicals, and electronics. The group’s latest venture into biopharmaceutical is its strategy to diversify and capitalize on growth opportunities in emerging markets.

Lotte’s healthcare-focused CVC was established after a 2021 change in South Korean regulations, which allowed holding companies to set up corporate venture capital units. This regulatory shift has sparked a wave of new CVC activity in the country. Even before launching the CVC, Lotte had already been active in venture investing, committing $107 million in 2021 alone.

Lotte Holdings CEO Genichi Tamatsuka emphasized the group’s plans for the healthcare sector, stating that the new CVC is a step toward becoming a leading player in health and wellness. “This CVC marks our pivotal first step in establishing a platform to ignite innovation and drive our future growth,” Tamatsuka noted. 

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