South Korea’s Financial Services Commission has launched the National Growth Fund, a five-year KRW150 trillion financial support program aimed at backing the country’s high-tech strategic industries, their supply chains, and the scale-up of innovative startups and venture businesses. A private-public joint expert strategy committee has also been formed and held its kickoff meeting as an advisory body for the fund. The fund is structured around a “professional, fair, and transparent” process, with cross-ministry coordination routed through the ministerial meeting on strengthening industrial competitiveness (chaired by the Deputy Prime Minister). Governance includes a two-tier decision-making process via an investment deliberation committee and a fund management deliberation committee, while the strategy committee provides input on management direction and industrial support strategy without deciding individual investments. A secretariat office has been established at the Korea Development Bank to provide administrative support, and an inter-ministerial government body is planned to identify joint collaboration projects and provide integrated policy and strategy solutions. Funding is split between KRW75 trillion in government guaranteed bonds and KRW75 trillion from the private sector, with deployment planned across direct equity investment (KRW15 trillion), indirect equity investment (KRW35 trillion), infrastructure investment (KRW50 trillion), and low-interest lending support (KRW50 trillion). The fund aims to allocate 40 percent or more of investments to regions outside the Seoul metropolitan area. More detailed operational plans and investment direction will be finalized after discussions at the ministerial meeting and the fund management deliberation committee. The FSC cited investment demand of more than 100 projects totaling about KRW153 trillion, with the government and the secretariat office reviewing potential initial projects and targeting investment implementation starting in early 2026.
South Korea Financial Services Commission 2025-12-11
South Korea Financial Services Commission launches KRW150 trillion National Growth Fund to support high-tech strategic industries
South Korea's Financial Services Commission has launched the National Growth Fund, a five-year KRW150 trillion program to support high-tech industries, supply chains, and startups. The fund involves a private-public strategy committee and a two-tier decision-making process, with funding split equally between government bonds and private sector contributions. Investment is planned across equity, infrastructure, and lending, focusing on regions outside Seoul, with initial projects targeted for early 2026.