The government plans to supply 247.5 trillion won of policy financing through policy financial institutions by 2025. The government has also set a plan to increase the supply of policy financing to the five key industries it has established by 20 trillion won compared to this year, bringing the total to 136 trillion won.
The Financial Services Commission noted that it held the 9th Policy Financing Support Council on the 24th under the chairmanship of Deputy Chairperson Kim So-young, discussing this agenda with relevant government ministries and policy financial institutions. The council confirmed plans for four policy financial institutions (Korea Development Bank, IBK Industrial Bank, Korea Credit Guarantee Fund, Technology Guarantee Fund) to provide 247.5 trillion won in policy financing next year. Of this, 136 trillion won will be invested in the five key sectors established by the government. The five key sectors include ▲ fostering advanced strategic industries ▲ supporting promising future industries ▲ restructuring existing industries and enhancing industrial structure ▲ fostering unicorn corporations ▲ alleviating business management difficulties due to worsening external conditions.
The government will operate a low-interest facility investment loan for the semiconductor sector at a scale of 4.25 trillion won, provided at an ultra-low interest level of around 2% for government bonds next year. Investment funds to strengthen the competitiveness of materials, parts, and equipment, such as the semiconductor ecosystem fund, will also be expanded. In addition, ‘Innovation Premier 1000’ will be introduced to broaden policy financing support and non-financial support for key corporations selected by each government ministry. Key corporations can receive non-financial support such as investment attraction support and consulting.
The Innovation Growth Fund, introduced in 2023, will also be established at a scale of 3 trillion won. Considering changes in the industrial environment, some programs of the Innovation Growth Fund will be changed, including ▲ creating a dedicated M&A league to actively encourage restructuring of small and medium-sized enterprises ▲ establishing a quick investment incentive system for fund management companies ▲ and unifying the parent fund operating committee to enhance the management system of policy funds.
The council also discussed the 6th amendment to the Joint Standards for Innovative Growth. The standards reflect recent trends, newly introducing topics on artificial intelligence and adding items such as smart fishing and nuclear fusion energy. Some items with reduced innovativeness (such as induction heaters and Stirling engines) were removed. The 6th amendment will take effect early next year, and a manual regarding the joint standards will be distributed to financial institutions.
Deputy Chairperson Kim said, “The role of policy financing, which shows high efficiency relative to fiscal input, is becoming increasingly important,” and added, “It is necessary to concentrate policy financing on key sectors to sufficiently support corporations' smooth investment and management activities.”