On the 21st, it was learned that an additional 700 billion won will be raised this year for the Industrial Technology Innovation Fund, the country's only fund dedicated to research and development support. The fund was established in 2020 and has been raised at an average of about 310 billion won per year, but its size will more than double this year.
The Industrial Technology Innovation Fund is overseen by the Ministry of Trade, Industry and Resources. Each year, the Ministry of Trade, Industry and Resources selects a designated bank to manage 3 trillion to 4 trillion won in research and development funds, and the banks seeking to attract these funds contribute part of their operating revenue in the form of investment. This year, IBK Industrial Bank and Hana Bank will contribute about 350 billion won. If private venture capital (VC) invests the same amount in a matching format, a new fund totaling 700 billion won can be created.
The fund is expected to focus on supporting the "manufacturing artificial intelligence (AI) transition project M.AX." In line with the "manufacturing AI 2030 strategy," the Ministry of Trade and Industry (MOTI) has set a goal of raising the AI adoption rate in domestic manufacturing to 50% by 2030. It plans to use the Industrial Technology Innovation Fund for this.
However, the Industrial Technology Innovation Fund's returns over the past six years have not yet been disclosed. Policy funds often invest in relatively high-risk areas, tending to have lower returns than private funds.
An official at the Ministry of Trade and Industry (MOTI) said, "Because the Industrial Technology Innovation Fund does not involve the government directly in selecting target corporations, its returns should not be as low as those of typical policy funds."