The National Growth Fund, which will invest 150 trillion won in advanced industries such as artificial intelligence (AI) and semiconductors, was officially launched on the 11th. Investment demand totaling 153 trillion won has been received so far, and the first investment project is expected to be decided within this month. Park Hyeon-joo, chair of Mirae Asset Group, and Seo Jung-jin, chair of Celltrion, will also join as co-chairs of the public-private Strategy Committee that discusses the fund operating strategy.

The Financial Services Commission held the ‘National Growth Fund Launch Ceremony and First Strategy Committee’ at Korea Development Bank in Yeouido, Seoul, and discussed the fund decision-making framework and plans going forward.

The National Growth Fund combines 75 trillion won in government-guaranteed bonds with 75 trillion won in private capital to operate at a scale of more than 150 trillion won over five years. It supports advanced strategic industries such as AI, semiconductors, mobility, and bio, along with their related ecosystems.

By support type, 15 trillion won will go to direct investments in small and medium-sized enterprises and mid-sized companies, and 35 trillion won will be provided through indirect investments via purpose-specific funds. A total of 50 trillion won will be supplied as investment and financing for infrastructure projects such as power grids and generation, and 50 trillion won will be offered as ultra-low interest loans at 2~3% for large-scale facility investments and research and development. At least 40% of the fund will be allocated to regional areas.

The fund's operating structure is broadly divided into government support and strategic advisory bodies, and investment review and fund management bodies. Government support and strategic advisory will involve the existing Government Meeting on Strengthening Industrial Competitiveness and the newly launched National Growth Fund Strategy Committee. The Strategy Committee will be co-chaired by Lee Eog-weon, chair of the Financial Services Commission, Seo Jung-jin, chair of Celltrion, and Park Hyeon-joo, chair of Mirae Asset Group.

Investment review and fund management will operate under a two-step structure of ‘Investment Review Committee→Fund Management Review Committee’. The Investment Review Committee, comprising private-sector finance and industry experts and Korea Development Bank, will conduct practical reviews of individual investments, and the Fund Management Review Committee, composed of nine private-sector experts, will make the final investment decisions on projects that deploy fund capital.

The government said it has received more than 100 investment requests so far from local governments and from industry and line ministries, totaling 153 trillion won. Working with the fund secretariat, the government is reviewing initial projects and plans to hold the first meeting of the Fund Management Review Committee within this month to finalize next year's operating plan, including specific investment projects.

Authorities and Korea Development Bank are continuing discussions on several candidates for the ‘first investment destination’. The National AI Computing Center to be built in Solaseado in Haenam County, South Jeolla Province, the Yongin Cluster being developed by SK hynix, and the Shinan Ui offshore wind project are being mentioned as strong candidates. Samsung Electronics Pyeongtaek Plant 5 (P5) in Gyeonggi Province is also reported to have applied for support from the National Growth Fund.

At the launch ceremony, FSC Chair Lee Eog-weon said, “With this National Growth Fund as a starting point, the financial sector must build systems and capabilities to invest more proactively in industry and deliver tangible results.”