South Korea’s Financial Services Commission has published a plan to establish and operate a KRW150 trillion-plus National Growth Fund over the next five years, aiming to scale funding for high-tech strategic industries and related value chains through equity investment, infrastructure finance and low-interest lending. The initiative is framed as a central plank of a shift toward “productive finance”, with the government projecting up to KRW125 trillion in added value alongside support for venture and tech company scale-up, regional development and job creation. The fund is designed to back areas including artificial intelligence, semiconductors, biotech and vaccines, robotics, hydrogen, secondary batteries, displays, future cars and defense, and would extend to game and content investments once relevant legislation is revised. It would combine a KRW75 trillion high-tech strategic industry fund with a further KRW75 trillion sourced from the private sector, individuals and financial companies; the Korea Development Bank would contribute sufficient funds to cover interest on fund bonds, while a KRW1 trillion fiscal contribution for fiscal year 2026 would sit in a subordinated position to absorb first losses and catalyse private participation. Deployment tools include direct and indirect equity investment, infrastructure investment such as AI data centres and high-tech industrial complexes, and lending support at around the 2 percent level for large-scale facility investment and research and development, with a stated emphasis on government-selected megaprojects including “30 priority projects” in the administration’s growth strategy; a vice-ministerial consultation body across ministries is planned to coordinate regulatory, tax, fiscal, financial and personnel support. The high-tech strategic industry fund is scheduled to launch in early December 2025, three months after promulgation on 9 September 2025, with the Financial Services Commission and the Korea Development Bank continuing work with relevant ministries to identify and support targeted megaprojects.
South Korea Financial Services Commission 2025-09-10
South Korea Financial Services Commission unveils KRW150 trillion National Growth Fund plan for high-tech strategic industries
South Korea's Financial Services Commission plans a KRW150 trillion National Growth Fund over five years to boost high-tech industries through equity investment, infrastructure finance, and low-interest lending. It will focus on AI, semiconductors, biotech, and future cars, combining KRW75 trillion from a high-tech industry fund with KRW75 trillion from private sources. The initiative aims to add KRW125 trillion in value, support venture scale-up, and create jobs, with a vice-ministerial body coordinating support.