The Financial Services Commission will increase the operating size of the Public Growth Fund from 150 trillion won to 200 trillion won and expand the investment targets to include aerospace.
The Financial Services Commission (FSC) reported these plans under the initiative "productive finance leading an ultra-gap industrial powerhouse" during a presidential policy briefing held at the Blue House state guesthouse on the 15th.
According to the policy briefing, the Financial Services Commission (FSC) will expand the annual operating size of the Public Growth Fund from the current 30 trillion won to 40 trillion won. The total operating size over the next five years will reach 200 trillion won.
The support targets will also be expanded from the existing 12 high-tech industries—semiconductors, displays, artificial intelligence (AI), bio, vaccines, robots, future mobility, defense, secondary batteries, hydrogen, critical minerals, and content—to new strategic industries such as aerospace. In particular, long-term growth capital will be concentrated in three mega-projects: semiconductors, AI data centers (AIDC), and physical AI.
A decision-making framework on par with the National Pension Service will be introduced for the Public Growth Fund, and objectivity and transparency in operations will be enhanced by establishing a risk management committee and a post-management committee. For corporations supported by the Public Growth Fund, a win-win program will be systematized by linking special guarantee contributions and consulting for partner companies. A social investment fund of 150 billion won will also be created as a fund of funds over three years with capital from financial companies.
Financial support to foster advanced technologies will also be strengthened. The Financial Services Commission (FSC) will establish a specialized manager, Korea Strategic Technology Partners (KSTP, tentative name), jointly founded by policy finance institutions and private financial companies, and supply up to 10 trillion won using policy funds as seed money. It will focus long-term capital on research and development (R&D) for future source technologies and the localization of core technologies in key industries.
To vitalize technology finance, a super-long-term technology investment fund with a size of 880 billion won and a maturity of at least 10 years will be launched, and the institutions handling intellectual property (IP) guarantees and loans will be expanded through cooperation among internet-only banks, regional banks, and the Korea Credit Guarantee Fund (KODIT). IP value assessments will also be reflected in selecting targets for the Public Growth Fund's super-long-term technology investments.
Support for carbon-neutral finance will also be expanded. The government plans to further expand the existing "790 trillion won over 10 years" in climate finance to build the power infrastructure needed for the three mega-projects—semiconductors, AIDC, and physical AI—and to support the Korea-style green transformation (K-GX). Transition finance will be fully supplied to shift high-carbon industries to low-carbon processes, and incentives such as preferential guarantee rates and guarantee ratios will be provided to energy-saving corporations.