The U.S. state of California has decided to provide around two-and-a-half million dollars in funds for embryonic stem cell research by a South Korean medical institute.

The CHA Regenerative Medicine Institute in Los Angeles announced Wednesday that it was included in the California state’s project to award 29 research grants worth more than 74 million dollars to California non-profit institutions and universities.

Professor Lee Jang-won who leads the institute's stem cell research team, said the funding shows that the U.S. has recognized Korea’s stem cell research capabilities, adding that with the financial backing it hopes to make significant advances in the field along with U.S. institutes.

Lee’s team unveiled its ambitious plan to be the first to produce a stem cell to treat Lou Gehrig's disease.

Led by the efforts of Governor Arnold Schwarzenegger, California decided in 2004 to provide three billion dollars for stem cell research over the next ten years.