The National Growth Fund, which will invest 150 trillion won in advanced industries over the next five years, will manage more than 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 at the Industrial Competitiveness Enhancement Ministers’ Meeting and Growth Strategy TF Meeting held on the 16th.
Funding support targets 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. Mega projects with significant ripple effects within the industry will be identified and supported through a comprehensive package including regulations, taxation, finance, and workforce development, centered around a joint task force and private experts.
Direct investment involves participating in capital increases for SMEs and mid-sized companies that find it difficult to obtain market-based loans or low-interest loans, or in capital increases for special purpose companies for large-scale factory expansions. The Advanced Strategic Industry Fund will directly become a shareholder and participate in capital increases or M&As with the companies and private financial institutions. The fund will operate with a scale of 3 trillion won, including 1.5 trillion won from the fund and 1.5 trillion won from private capital.
Indirect investment involves creating large-scale funds jointly with private capital such as banks, pension funds, and retirement pensions, and executing equity investments that meet policy objectives. The scale is 7 trillion won, including 1.5 trillion won from the fund and 5.5 trillion won from private capital. A blind fund of 3.9 trillion won and a project fund of 1.7 trillion won will be introduced to participate in large-scale mega projects jointly with the private sector.