The Public Growth Fund, which will inject 150 trillion won over five years into advanced industries such as artificial intelligence (AI) and semiconductors, will deploy more than 30 trillion won next year. Of that, 600 billion won will be raised as a "public participation fund" so that ordinary people can share in the fruits of growth, and 800 billion won will be allocated to an "ultra-long-term technology investment fund" to invest in technology companies for more than 10 years.
On the 16th, the Financial Services Commission (FSC) and related ministries announced the "2026 Public Growth Fund management plan," which includes these details. The government held a launch ceremony for the Public Growth Fund on the 11th and on this day provided more detailed management plans for next year.
In next year, the first year the Public Growth Fund goes into full operation, a total of "30 trillion won + alpha" will be injected. The Financial Services Commission (FSC) plans to actively approve even if demand exceeds 30 trillion won to maximize the early support effect. By industry, 6 trillion won will go to artificial intelligence (AI), 4.2 trillion won to semiconductors, and 3.1 trillion won to future cars and mobility.
By support method, it will provide 3 trillion won in direct investment, 7 trillion won in indirect investment, 10 trillion won in infrastructure loans and investments, and 10 trillion won in ultra-low-interest loans. Direct investment means participating in corporations' capital increases or factory expansions in the form of equity. Investment requests have been received for projects such as a next-generation AI solution software developer, the establishment of a special purpose company (SPC) for an AI robot ecosystem, and a capital increase to expand a semiconductor specialty gas plant for small and medium-sized enterprises.
Indirect investment involves the advanced industry fund and private capital (banks, pension funds, retirement pensions, etc.) jointly forming large-scale funds to execute equity investments that meet policy objectives. Through a 560 billion won policy fund, it will support large-scale projects. Along with blind funds (70%), it will introduce project funds (30%) to join mega projects through public-private partnerships.
The public participation fund, in which ordinary people can directly take part, will be created at a scale of 600 billion won. It is designed to buffer loss risk through a subordinated structure in which fiscal funds account for up to 20%. Detailed measures, including fiscal subordination enhancements and tax benefits, will be announced separately in the first quarter of next year.
An "ultra-long-term technology investment fund" will also be newly established to invest for more than 10 years in promising high-tech companies. The contribution ratio of the advanced strategic industry fund will be significantly increased to 75%, higher than private contributions, and in light of the higher risk, fiscal funds will participate at a subordinated 40% level.
Existing policy funds (the Innovation Growth Fund and the Semiconductor Ecosystem Fund) will be absorbed and streamlined into the Public Growth Fund. However, a scale-up fund, which plays an important role in corporations' growth stages, will be newly established at 500 billion won to support scale-ups across industries.
The 10 trillion won allocated for infrastructure loans and investments will support building infrastructure for the overall ecosystem. Investment requests have been filed for projects such as the Pyeongtaek semiconductor plant wastewater reuse project, a floating solar project to support the National AI Computing Center advanced industry, and a district energy generation project for a semiconductor cluster.
The 10 trillion won in ultra-low-interest loans will supply long-term funding for large-scale facility investment and research and development (R&D) at interest rates in the 2–3% range, comparable to government bond yields. If funding demand is very large, private banks may also participate in the form of a syndicated loan.
The government will appoint Commissioners to the fund management committee this month and hold the first meeting. However, to ensure fairness in fund execution, the list of Commissioners will remain undisclosed. The government received a total of roughly 100 cases, representing 153 trillion won in investment demand, by the end of last month and will soon decide on the "first investment destination." A wide range of applicants have applied, including large corporations, mid-sized and small corporations, and regional corporations.
Factors to be considered include whether the project has a large spillover effect on industry and can raise competitiveness across the industrial ecosystem, and whether it contributes to regional economic growth and job creation. The Financial Services Commission (FSC) is also reviewing applying a special immunity for the investment and loan operations of financial companies participating in the Public Growth Fund.