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https://www.koreatimes.co.kr/path/A2025091014150001906
The Lee Jae Myung administration announced an expansion of the so-called National Growth Fund, a government-led public-private initiative for strategic economic growth, increasing its scope from the originally pledged 100 trillion won ($72 billion) to 150 trillion won.
The fund is designed to accelerate long-term support for 10 key advanced industries, including artificial intelligence (AI), semiconductors and biotechnology, aiming to revitalize Korea’s economy through industrial restructuring.
Speaking at a livestreamed public briefing on the National Growth Fund in Seoul Wednesday ? attended by government ministries, industry leaders, startups, venture firms and financial institutions ? the president said the initiative would inject new vitality into Korea’s stagnant industries.
“Korea is at a critical turning point: whether to continue in prolonged low growth with weakened competitiveness in our key industries, or to leap forward as a developed nation. The National Growth Fund will inject new energy into our stagnant industries,” Lee said. “We had initially discussed a 100 trillion won fund, but we decided to be bolder and increase it by 50 percent to 150 trillion.”
The fund will consist of 75 trillion won from the Advanced Strategic Industry Fund financed and managed by Korea Development Bank, and another 75 trillion from contributions by private-sector investors, the public and financial institutions.
The National Growth Fund is structured to provide enough capital to cover bond interest and operating costs, enabling the government to act as a first mover by assuming early-stage risks and encouraging active private participation. Financial institutions and pension funds are also expected to join voluntarily, drawn by the fund’s shared-risk design.
Lee emphasized the fund will be committed to large-scale, long-term investments in Korea’s core industries, highlighting that venture companies’ innovative technologies are crucial for the country’s future growth.
“Previously, national resources were concentrated on large corporations and catching up with advanced economies, leaving venture innovation somewhat neglected. We need to strengthen the venture ecosystem so that successful startups can scale further and failed ventures can recover. This is essential for the future of Korea’s economy,” the president said, adding that the fund will act as a “primer” to attract private capital.
Over the next five years, the fund will provide support for companies in strategic high-tech industries, including AI, semiconductors, biotechnology, vaccines, robotics, hydrogen, secondary batteries, displays, future mobility and defense. It is expected that the initiative could generate up to 125 trillion won in added value.
The president also emphasized the equitable distribution of growth opportunities and benefits, urging active participation from industry, financial institutions and the public.
From the private sector, attendees included SK Group Chairman Chey Tae-won, Celltrion Group Chairman Seo Jung-jin, Samsung Electronics President Park Seung-hee, Furiosa AI CEO Baek Jun-ho, LG Uplus Executive Vice President Kwon Yong-hyun, Hyundai Motor Vice President Kim Dong-wook, SKT Vice President Lee Jong-min and newly appointed Korea Development Bank President Park Sang-jin. Leaders from the finance, venture and startup sectors also joined.
Lee has emphasized that advanced industries such as AI, biotechnology and robotics are “game changers” capable of reshaping the prosperity of future generations. The fund comes amid a global investment race, with nations deploying massive capital and imposing high tariffs in the competition for strategic industry dominance.
The Advanced Strategic Industry Fund, a key pillar of the National Growth Fund accounting for roughly half of its total value, was officially announced Tuesday and is scheduled to launch in early December.
