The 150 trillion won Public Growth Fund has embarked on a full-fledged regional tour. Chairperson Lee Eog-weon will visit the Gwangju–South Jeolla region in person over two days on the 11th–12th to hold the "Public Growth Fund·Regional-Preference Finance regional roundtable" and hear from local industry and government officials. This schedule marks the fund's first official move to put regional companies at the center of its future growth strategy.
Launched in Dec. last year, the Public Growth Fund is the Financial Services Commission (FSC)'s key project to invest 150 trillion won in advanced strategic industries such as semiconductors, batteries and AI to secure national competitiveness in the race for technological supremacy. Having recently approved the Shinan-Ui offshore wind farm project in South Jeolla as its first project and begun full-scale funding support, the roundtable is seen as an opportunity to flesh out the fund's direction and strategies to link up with the region.
Lee visited Kia and POSCO FUTURE M, core industries in the Gwangju–South Jeolla region, meeting sequentially with on-site management to discuss ways to strengthen the competitiveness of local high-tech industries. At the official roundtable held later at the Yeosu Chamber of Commerce and Industry, Lee outlined the Public Growth Fund's management direction and region-specific financial support measures, emphasizing that "a practical solution to balanced national development is for regions to build their own industrial ecosystems, with finance co-designing that foundation."
Lee presented three key policy directions for the success of the Public Growth Fund: ▲ strengthening collaboration among policy finance institutions ▲ active participation by private finance ▲ building a communication system among finance, industry and regions.
First, Lee called for strengthening the collaboration framework among policy finance institutions such as Korea Development Bank, Industrial Bank of Korea (IBK) and Korea Credit Guarantee Fund (KODIT). Introducing support measures centered on advanced industries, including IBK's 300 trillion won productive finance plan and KODIT's AI/deep tech-focused guarantee programs, Lee said, "All policy finance must move in the same direction to have a chance in the competition of advanced industries."
This year, KODIT will phase in: ▲ a "deep tech customized guarantee program" that can provide up to 7 billion won for up to 11 years (total 800 billion won over five years) ▲ a special AI advanced industry guarantee (2 trillion won) targeting the AI, bio and content industries ▲ the "mid-sized company growth ladder guarantee," which provides up to 50 billion won by growth stage through to mid-sized status.
In addition, to expand private finance participation, the government will pursue capital regulation easing in tandem with indemnity measures. It will ease the risk weight applied when banks invest in policy funds (400%→100%), and for financial companies participating in co-investments with the Public Growth Fund, it will exempt employees from sanctions for losses except in cases of willful misconduct or gross negligence. This "indemnity guideline" is set to take effect next month.
Lee then mentioned a "finance–industry–region linked growth model." Lee emphasized, "The front line of advanced industries is fierce technological competition, but behind that is an investment war," adding, "Finance must now be not just a simple provider of funds, but a partner co-designing the growth of industry and regions."
Alongside this, the Financial Services Commission (FSC) will also push the "regional-preference finance activation plan" to increase regional financial supply. Under this plan announced in Oct. last year, policy finance institutions will supply a total of 240 trillion won in corporate funds this year, of which 106 trillion won (41.7%) or more will go to areas outside the capital region. By 2028, the share supplied to regions will be expanded to 45% to create synergy with the Public Growth Fund.
Wrapping up the roundtable, Lee said, "The growth of advanced industries must start in the regions, not be centered on the capital area," adding, "The Financial Services Commission will continue institutional support so that finance becomes the real engine for nurturing regional industries." Lee also urged, "Regional companies should boldly propose creative projects, and financial institutions must likewise deepen their understanding of industry and regions."
The Public Growth Fund regional roundtables will be expanded to Busan, Daegu and Chungcheong, among others, and the Financial Services Commission (FSC) plans to institutionalize a "region-centered innovative finance network" by formally including local governments in the quarterly Policy Finance Support Council.