State-owned policy finance institutions, including Korea Development Bank and Industrial Bank of Korea (IBK), will provide 252 trillion won in policy finance next year. They will inject 150 trillion won into the five key advanced strategic industry areas (47 institutional sectors), including semiconductors, and 106 trillion won into regional industries under the regional supply expansion target system.
The Financial Services Commission held the 13th Policy Finance Support Council at Front1 in Mapo, Seoul, on the 24th, chaired by Vice Chairman Kwon Dae-young, with relevant ministries and policy finance institutions, and said it finalized the 2026 policy finance supply plan. The four major policy finance institutions (Korea Development Bank, Industrial Bank of Korea (IBK), Korea Credit Guarantee Fund (KODIT), and Korea Technology Finance Corporation (KOTEC)) will provide 252 trillion won in policy finance next year, up 1.8% from this year.
Policy finance will concentrate more than 150 trillion won in the five key strategic areas (47 institutional sectors), including advanced strategic industries. That is an increase of 12 trillion won (8.9%) from this year's target of 138 trillion won. It will inject 4.25 trillion won into the cultivation of advanced strategic industries such as semiconductors, secondary batteries, bio, and artificial intelligence (AI), and supply 2.47 trillion won to promising future industries such as nano, hydrogen, aerospace, defense, agri-food, and wind power.
A total of 3.22 trillion won is allocated for industrial structure advancement and restructuring of existing industries, and 1.9 trillion won to foster unicorn ventures and small and midsize and mid-tier corporations. Funds totaling 3.18 trillion won will also be injected to ease management difficulties for corporations stemming from deteriorating external conditions such as a strong dollar.
The Financial Services Commission said the Public Growth Fund will play a differentiated role from existing policy finance, which focuses on guarantees and loans, by providing equity investment for mega-projects and sharing risk upfront. In addition, starting next year, with the implementation of the policy finance regional supply expansion target system, more than 106 trillion won (41.7%) will be supplied to the regions.
The meeting also shared detailed management plans for the Public Growth Fund in 2026. The Public Growth Fund will create a general-purpose fund, a dedicated scale-up fund, and industry- and region-specific funds to support advanced strategic industries and the broader industrial ecosystem, and the indirect investment institutional sector (policy funds, 7 trillion won) will begin recruiting master fund managers in January next year.
Vice Chairman Kwon Dae-young said, "The 150 trillion won supply plan for key areas is separate from the Public Growth Fund, which will be fully launched starting next year," and added, "Through the Public Growth Fund, more than 30 trillion won per year will also be provided to advanced strategic industries and the related ecosystem as a whole."