The Financial Services Commission held the launching event for National Growth Fund on December 11, a comprehensive financial support program worth KRW150 trillion for five years aimed at propelling the country’s high-tech strategic industries. A private-public joint strategy committee for National Growth Fund, which is an advisory body composed of experts from diverse sectors, has also been organized and held the kickoff meeting on the same day.
A Summary of Opening Remarks by FSC Chairman
At the launching event, FSC Chairman Lee Eog-weon delivered opening remarks and spoke about the importance of mobilizing all necessary national capacities for ensuring a competitive edge amid the deepening of global competition over industries and technologies. As industries are driving innovation and growth with a vision for future and the financial sector is providing venture capital to innovative companies and promising enterprises, Chairman Lee underscored the significance of industries and financial sectors coming together in collaborative efforts with the government to provide a strong engine of growth for the economy. With the launching of National Growth Fund, Chairman Lee also urged financial companies to bolster their capacities to be able to more actively supply venture capital and make investment in high-tech strategic industries.
Governance Structure
National Growth Fund will be operated through a professional, fair, and transparent decision-making process. The ministerial meeting on strengthening industrial competitiveness (chaired by Deputy Prime Minister) will be utilized to ensure seamless coordination and collaboration between related ministries. A private-public joint expert strategy committee will be operated to regularly provide consultations on the direction of fund management and strategies for industrial support. There will be an investment deliberation committee and a fund management deliberation committee for the operation of a two-tiered decision-making process. The strategy committee will not make decisions on individual investment projects but offer consultations reflecting opinions from diverse sectors and groups. A secretariat office for National Growth Fund has been established at the Korea Development Bank (KDB) for providing administrative and working-level support. An inter-ministerial government body is also planned to be established to seek joint collaboration projects and provide total solutions on policies and strategies.
Direction of Fund Management
National Growth Fund will provide support for a wide range of high-tech strategic industries and their supply chains and assist innovative startups and venture businesses to scale up. The fund will aim to distribute 40 percent or more of its investments to the regions outside the Seoul metropolitan area in a move to promote a more balanced growth across the country.
For the next five years, National Growth Fund worth KRW150 trillion will be established with KRW75 trillion in government guaranteed bonds and another KRW75 trillion originating from the private sector.
The fund will support high-tech strategic industries and their supply chains through diverse methods, including (a) direct equity investment (KRW15 trillion), (b) indirect equity investment (KRW35 trillion), (c) infrastructure investment (KRW50 trillion), and (d) low-interest lending support (KRW50 trillion).
Further Plan
More detailed plans for the operation of National Growth Fund and the direction of fund management will be decided after having relevant discussions at the ministerial meeting on strengthening industrial competitiveness and the fund management deliberation committee. At the current stage, investment demands originating from local government organizations, industries, and related government ministries amount to more than 100 projects in the value of about KRW153 trillion. In close cooperation with the fund’s secretariat office, the government is currently looking into potential initial projects. The government and the secretariat office will strive to make sure a speedy implementation of investment funds starting in early 2026.
* Please refer to the attached PDF for details.