Former Minister of the Ministry of SMEs and Startups Lee Young said that in the artificial intelligence (AI) era, when the value of intangible asset becomes more important, private finance must take the lead in investing in innovative industries. Government support alone has limits, she said, adding that private finance should design the "board" for the industrial hegemony competition.
Lee delivered a keynote speech titled "The role of productive finance for innovative growth in the age of AI transformation" at the "2026 Future Finance Forum," hosted by ChosunBiz at the Westin Josun Hotel in Sogong-dong, Seoul, on the 13th.
Lee emphasized that in the AI era, the value of invisible asset will grow larger. She said, "As of 2025, 92% of the value of U.S. S&P 500 corporations is intangible asset," adding, "Invisible value has surpassed tangible assets, and the gap will widen further." She added, "Jobs and workplaces are undergoing major changes, and we could even reach a situation where we cannot control AI technology."
She assessed that in this situation, the role of private finance is decisive to maintain national competitiveness. During the Industrial Revolution, the United Kingdom was able to maintain hegemony with the support of finance, and in the United States, the financial sector, including JPMorgan, also supplied large-scale funds to support industrial growth, she said.
In contrast, she noted that Korea's financial policy has been led by the government, causing a break in continuity whenever administrations changed. She said, "Various policy funds have emerged under successive governments, but the fund framework changed every time the administration changed."
Regarding the productive finance policy of 1,240 trillion won the government is currently pursuing, Lee said, "It is encouraging that the government participates as a subordinated investor and shares performance with the public," and added that for the Public Growth Fund to succeed, Korea must establish screening standards for intangible assets and build the capability to discover and evaluate innovative corporations.
Lee called for a proactive role by private finance. She said, "Do not just wait for state support; we must together create the soil where innovation can succeed. Private finance, which has money, talent, and markets, should place the first bets," adding, "Rather than being followers who merely track policy signals, private finance should play the role of designing the landscape of the AI hegemony competition."