The government will create a "national growth fund" of more than 100 trillion won to foster advanced innovative industries. This will be formed by combining the newly established advanced strategic industry fund (over 50 trillion won) funded by the Korea Development Bank with private funds (over 50 trillion won) from pension funds, private finance, and public offerings, resulting in a scale of "100 trillion won plus alpha."
The government announced the plan to create the national growth fund in its new economic growth strategy released on the 22nd. The national growth fund was proposed by the Presidential Committee on Policy Planning as a means to secure resources that will drive the growth of advanced innovative industries, including artificial intelligence (AI).
This fund is expected to be invested in future strategic industries, energy infrastructure, and the cultivation of related technology and venture companies. In particular, there are plans to provide concentrated support with a separate limit set for the AI sector.
The fund will be used for long-term equity investment in small and venture companies and for ultra-low interest loans for large-scale facility investments.
The management of the fund will be handled by a privately centered management committee, while final decisions related to strategic industries will be made at the meeting of the Ministerial Council on Industrial Competitiveness.
In particular, it is expected that significant investments will be focused on energy infrastructure, which requires large-scale financing. The government has set a goal to increase renewable energy generation capacity to 78 GW by 2030.
To achieve this goal, the government plans to significantly increase subsidies and loan support for renewable energy generation facility installations. It will diversify solar power locations such as industrial complexes, agricultural sites, and floating solar and plans to relax regulations, including reducing distance requirements among local governments.
It seems that funds from the national growth fund will also be used for the construction of the "energy highway," which is a key pledge of the Lee Jae-myung administration. The government has revised the target to advance the completion date of the West Coast energy highway from 2031 to 2030 by developing key technologies for high-voltage direct current (HVDC).
A special law to promote the establishment of RE100 (Renewable Energy 100%) industrial complexes will also be pursued for legislation in the second half of this year. The RE100 industrial complexes are planned to offer exceptional incentives, such as reducing renewable energy procurement costs and providing special allocations for dwellings near the complexes.