The South Korean government has announced the establishment of a 50 trillion won fund to support advanced strategic industries, including semiconductors and batteries. The government has also left the possibility open to expand the scope of support to other industries, such as automobiles and steel, through presidential decrees, especially in light of recent tariff threats from the United States. The government anticipates that the fund, with private sector matching, could generate over 100 trillion won in total support.

Fund Details and Support Plans:

Fund Size: Up to 50 trillion won over five years.
Operating Entity: Korea Development Bank (KDB).
Target Industries:Advanced strategic industries like semiconductors, secondary batteries, displays, bio, defense, and robotics.
National strategic technology sectors, including vaccines, hydrogen, future mobility, and artificial intelligence (AI).
Funding Source: Issuance of government-guaranteed advanced strategic industry fund bonds.
Support Methods: Various approaches, including low-interest loans, equity investments, and subordinated financing.Equity investments in small and medium-sized enterprises (SMEs).
Indirect investments through funds and joint ventures.
Subordinated participation in ultra-long-term infrastructure projects to attract private investment.
Expansion of ultra-low-interest loan support through joint loans with private banks.
Provision of financial packages to enhance competitiveness in overseas order competitions.

Fund Management and Operation:

Establishment and operation of a fund management review committee.
Major policy decisions, such as adding support target industries and annual operating scale, will be made through the Industrial Competitiveness Enhancement Ministerial Meeting.

[Copyright (c) Global Economic Times. All Rights Reserved.]