The transition committee of Lee Jae-myung's administration, known as the Presidential Committee on Policy Planning, has prepared a plan to establish a national growth fund worth 100 trillion won. The national growth fund, composed of the 'advanced innovation industry fund' and the 'future growth fund,' will be invested in strategic industries such as semiconductors, secondary batteries, and biotechnology, as well as in regional balanced development areas like the five regions and three special areas.
The Presidential Committee on Policy Planning announced at a national report conference held at the Blue House's state guesthouse on the 12th that among the five national goals, the area of 'a leading innovative economy' includes 'the establishment of a productive finance national growth fund of 100 trillion won that supports true growth' as a national agenda.
The national growth fund is likely to consist of the advanced innovation industry fund and the future growth fund. It is expected that an operating committee, which will be newly established under the Industrial Economic Ministerial Meeting, will manage it. Although the Presidential Committee referred to it as the '100 trillion national growth fund,' the actual size is expected to exceed 100 trillion won when the advanced innovation industry fund and the future growth fund are combined.
The advanced innovation industry fund will be formed by combining the advanced strategy industry fund from the Korea Development Bank and private capital, creating a fund of '100 trillion won plus alpha.' Low-interest loans will be executed for industries designated by the president, such as semiconductors, secondary batteries, displays, biotechnology, mobility, artificial intelligence (AI), robotics, and defense industry. Additionally, it is reported that the advanced innovation industry fund will also be used for infrastructure investments to build strategic industrial complexes, such as AI data centers and energy expressways.
The future growth fund will be created from resources contributed by the public, financial companies, and pension funds. It will be used to establish project funds supporting companies, such as early venture capital (VC) investments. It will also be allocated to create regional funds focused on the five regions in the metropolitan area, Chungcheong, Honam, TK (Daegu and North Gyeongsang), and PK (Busan, Ulsan, and South Gyeongsang), as well as three special areas in Gangwon, North Jeolla, and Jeju.
The national growth fund is expected to play a pivotal role in the 'true growth' strategy of the Presidential Committee on Policy Planning. The committee has set a goal to achieve 'a dominant AI country, a potential growth rate of 3%, and positioning Korea in the top five nations globally.' To strengthen the foundation for sustainable growth, it has selected ▲ capital circulation transformation (finance) ▲ regulatory rationalization ▲ active fiscal and public innovation as core initiatives.
Jung Tae-ho, the head of the economic subcommittee of the Presidential Committee on Policy Planning, said at the public report conference that day, 'We will focus on nurturing future strategic industries with the national growth fund and open the era of KOSPI 5000 through capital market innovation,' adding, 'The Lee Jae-myung administration will turn Korea into a global leading nation through technological advancements.'