Seoul: South Korea will establish a 150 trillion-won (US$120 billion) public-private fund to boost investment in artificial intelligence (AI) and other advanced industries, announced President Lee Jae Myung on Wednesday.
According to Yonhap News Agency, Lee revealed the plan for the "Public Growth Fund," elevating his initial proposal of 100 trillion won. Lee noted that major countries, like the United States and China, are enhancing government support for cutting-edge strategic industries as part of what he described as a "gunless war." The South Korean government plans to increase the fund's scope from 100 trillion won to over 150 trillion won.
The initiative's goal is to speed up AI adoption across various sectors and allocate resources to key industries such as semiconductors, secondary batteries, biotechnology, energy, hydrogen, defense, vaccine production, and robotics over the next five years. Lee emphasized the fund's potential to offer opportunities and returns in emerging sectors, highlighting the current imbalance in support between venture startups and large conglomerates.
"We know well that venture firms requiring risk-taking and patience cannot easily survive in the market alone," Lee stated. "That is why the government will play the role of priming water through fiscal support in order to draw in private capital."
The fund will be divided into a 75 trillion-won government-guaranteed fund for strategic industries, set to launch in December, and 75 trillion won in private-sector investment. This will include direct and indirect financing, government-backed bonds, and low-interest loan programs.
The announcement was made at a presentation attended by the ministers of finance, science and ICT, and industry, along with business leaders such as SK Chairman Chey Tae-won, Celltrion CEO Seo Jung-jin, Samsung Electronics President Park Seung-hee, and FuriosaAI CEO Baek Joon-ho.