Seoul – The South Korean government has announced plans to create a multi-billion dollar fund to support the development of advanced industries such as batteries and biotechnology. The fund, which is expected to exceed 30 trillion won (approximately 22 billion USD), will be named the "Advanced Strategic Industry Fund" and will be managed by the Korea Development Bank.

This initiative comes as the global battery industry faces challenges such as the temporary slowdown in electric vehicle demand and the potential rollback of electric vehicle mandates in the United States under a possible second Trump administration. The fund is expected to provide significant support to South Korean battery manufacturers, who have expressed concerns about their future prospects in this environment.

"We will establish the 'Advanced Strategic Industry Fund' to support advanced industries and technologies such as batteries and biotechnology," said Choi Sang-mok, Deputy Prime Minister and Minister of Economy and Finance, during a meeting on national issues. "The fund will be more than double the size of the semiconductor financial support program (17 trillion won) and will provide various forms of support, including low-interest loans and equity investments."

While the exact size of the fund has not been disclosed, it is estimated to be at least 34 trillion won, given that it will be more than double the size of the semiconductor support program. The government plans to finalize the details of the fund and submit relevant legislation to the National Assembly for approval in March.

This move reflects the government's commitment to supporting the growth of advanced industries in the face of increasing global competition and potential challenges posed by a second Trump administration in the US, which could prioritize American industries over foreign ones. By providing substantial financial support through state-owned financial institutions, the government aims to bolster the competitiveness of South Korean companies in these strategic sectors.

In addition to the fund, the government also emphasized the importance of strengthening the country's artificial intelligence (AI) capabilities. Choi acknowledged the emergence of competitive AI models from other countries, such as China's DeepSeek, and stressed the need to accelerate the development of South Korea's own AI technologies. He announced plans to expedite the operation of the National AI Computing Center and convene a meeting of the National AI Committee to discuss detailed strategies for making South Korea one of the world's top three AI powers.

Choi also called for the National Assembly's cooperation in passing legislation related to semiconductors, electricity, and energy, emphasizing that such support is crucial for achieving tangible results in enhancing industrial competitiveness.

The government plans to engage with industry associations in sectors such as semiconductors, batteries, automobiles, shipbuilding, and steel to assess the current situation on the ground and develop appropriate response strategies. Choi affirmed the government's commitment to providing full support and acting swiftly to address the challenges faced by these industries.