The National Growth Fund, which plans to invest 150 trillion won in advanced industries over the next five years, will manage over 30 trillion won next year to support venture innovation companies, scale-ups, and regional growth related to advanced strategic industries and ecosystems. The government announced this plan during the Industrial Competitiveness Enhancement Ministers’ Meeting and Growth Strategy TF Meeting on the 16th.
Funding will target advanced strategic industry companies such as semiconductors, secondary batteries, vaccines, displays, hydrogen, future cars, bio, AI, defense, and robots, as well as industries necessary for future strategies and economic security like content and key minerals. Additionally, mega projects will be identified and supported through a comprehensive package including regulations, taxes, finance, and workforce development, led by a joint task force and private sector experts.
Direct investment will involve participating in capital increases for SMEs and mid-sized companies that find it difficult to secure market-based loans or low-interest loans, or in capital increases for special purpose companies for large-scale factory expansions. Indirect investment will involve creating large-scale funds with private capital such as banks, pension funds, and retirement funds, to execute equity investments in line with policy objectives. The scale is 1.5 trillion won from the fund and 5.5 trillion won from private capital, totaling 7 trillion won.
Ultra-low interest loans will support large-scale facility investments and R&D at a level of 2-3% national bond rates, with a scale of 10 trillion won. The decision-making system of the National Growth Fund will be centered on private experts from the financial and industrial sectors, ensuring the most professional, fair, and transparent operation.