The Public Growth Fund, being created at a scale of 150 trillion won, will invest 30 trillion won over the next five years in seven areas, including the SK hynix Yongin semiconductor cluster and Samsung Electronics' Pyeongtaek Plant 5 (P5). To revitalize regional economies, the scale of policy finance supply will be increased by 25 trillion won by 2028.
Lee Eog-weon, chairman of the Financial Services Commission, said on the 19th during a presidential policy briefing that "through a financial grand transformation, we will open the broad road to a major economic leap," and stated accordingly.
The Financial Services Commission said it will supply 150 trillion won to advanced industries through the Public Growth Fund. As the first mega project, the FSC selected seven areas: ▲ fostering K-Nvidia ▲ the national AI computing center ▲ renewable energy generation ▲ a solid-state battery materials plant ▲ a power semiconductor production plant ▲ an advanced AI Semiconductor foundry ▲ semiconductor energy infrastructure.
The FSC decided to invest 30 trillion won in this project over five years. Investment targets include the SK hynix Yongin semiconductor cluster, the Solaseado national AI computing center in Haenam, South Jeolla, the Shinan Ui offshore wind project, and Samsung Electronics' Pyeongtaek Plant 5 (P5).
The FSC decided, through the Policy Finance Council, to concentrate policy finance on nurturing advanced industries, supporting promising industries, and restructuring existing industries. It will also increase policy finance supply for revitalizing regional economies. The FSC will expand the scale of regional policy finance, which was 100 trillion won annually this year, to 125 trillion won by 2028. When banks extend loans to local corporations, the loan-to-deposits ratio regulation will be lowered from the current 85% to 80%. It will also establish the Southeast Region Investment Corporation to prepare for opening the Arctic route and support regional industries.
Linked to the 2035 Nationally Determined Contribution (NDC), it will supply policy climate finance of up to 80 trillion won per year over five years. It will also introduce a Korea-style transition finance to support carbon reduction in high-carbon industries such as steel.
It will also improve the financing system for small business owners. The FSC will develop a credit evaluation model using small business owners' non-financial information and establish an integrated information center for small business owners. Banks will also develop new products for small business owners, such as providing working capital loans to corporations that hold purchase orders prior to the sales stage.
It also decided to form a consultative body to review progress on productive finance by the private financial sector and to seek ways to strengthen competitiveness. In addition, it will establish a comprehensive regulatory framework for digital assets, including rules for stablecoins.