South Korea plans to expand its national investment fund to 150 trillion won to power next-gen tech giants. This expansion supports President Lee Jae-myung’s vision of global leadership in AI and innovation. The fund will drive investment into high-tech industries and early-stage startups.
Officials say the Growth Fund will exceed the initial 100 trillion won target. It aims to attract both public and private capital. The strategy is to help early-stage tech firms scale and lead global markets.
A key part of this initiative is a 50 trillion won high-tech industry fund managed by the Korea Development Bank (KDB). It targets next-gen tech giants in sectors such as semiconductors, biotech, AI, defense, and aerospace. These areas are essential to creating future global leaders in innovation.
The National Growth Fund also hopes to draw 100 trillion won from the private sector. Investors may include banks, brokerage firms, pension funds, corporations, and individuals. In addition, this combined effort is expected to spark new opportunities in deep tech and venture capital.
KDB will run the fund as a fund of funds, targeting companies with patents, scalable technology, and strong growth potential. It will provide at least 10% of the capital in each sub-fund. These early investments will absorb risk and encourage private participation.
Furthermore, commercial banks may invest in higher-risk tranches of startup funds. However, some may offer low-interest loans or launch joint ventures with startups. These flexible approaches help accelerate the rise of next-gen tech giants.
President Lee asked financial institutions to move beyond safe lending like mortgages. He wants them to support the real economy and innovation. The Growth Fund is a major tool in achieving his 3.3.5 policy goal.
That vision includes boosting economic growth to 3%, becoming a top-five global economy, and becoming a top-three AI power. The Growth Fund will help redirect capital away from real estate and into new technology.
Officials highlight that global rivals are pouring funds into tech leadership. Meanwhile, local startups face a funding shortage. The new fund seeks to fill this gap and support next-gen tech giants with massive potential.
In conclusion, to encourage wide support, the government may also offer tax incentives. These measures could bring in more capital and speed up innovation. A strong investment base will help position the country as a global tech leader.
