Lee Jae-myung, former leader of the Democratic Party of Korea, has been confirmed to be reviewing the establishment of a state-led fund to be invested in seven areas including "K-defense" and "smart factories" as a presidential campaign promise supporting the "growth first" discourse. This has been named the "water tower fund" as it signifies a role in enhancing industrial competitiveness and economic growth.
According to ChosunBiz inquiries on the 10th, the policy think tank of the former leader, "Growth and Integration," included this sovereign wealth funds establishment plan in its policy documents ahead of its launch on the 16th. Previously, Representative Lee had mentioned investing in AI-related corporations through a sovereign wealth fund or a national fund to share revenue, which has now expanded significantly.
The target areas of the "water tower fund" are divided into seven fields based on the first letters from A to G. The areas include ▲AI (artificial intelligence) ▲Bio (bio health) ▲Culture & Contents ▲Defense ▲Energy ▲Factory & Automation ▲Global supply chain, aimed at creating state-led funds.
In relation to this, the economic policy unit will be subdivided into categories such as "taxes," "venture," and "finance," and various fund commitments will be reviewed in each field. The plan is to divide into more than 30 subcommittees. An official from "Growth and Integration" stated that "experts are reviewing various forms of the 'water tower fund' commitment," adding that "the strengthening of industrial competitiveness and economic growth led by the Democratic Party inevitably requires fiscal support, and the idea is to fulfill that role through state-led funds."
"Growth and Integration" is a group primarily consisting of scholars from various fields and former bureaucrats. Once a framework for the Democratic Party's presidential campaign promises is outlined here, it undergoes a final review and selection process by the party's policy committee.
Lee Jong-il, a professor emeritus at the Korea Development Institute (KDI) Graduate School of International Studies, known as a progressive economist, is the head of the think tank. Also, Professor Heo Min from Chonnam National University's Department of Earth Environment Science serves as co-head, while Professor Jang Byeong-tak, director of the Artificial Intelligence (AI) Research Institute at Seoul National University, Professor Kim Jin-ah from Hankuk University of Foreign Studies, and Professor Kim Yang-hee from Daegu University's Department of Economics and Finance serve as non-resident co-heads.