South Korea plans $34B fund for strategic sectors like chips, AI
The state-run Korea Development Bank’s 50 trillion won (USD 34.37 billion) fund will be offered to firms in national strategic industries through cheap loans and other investments.
South Korea is planning to establish a 50 trillion won (USD 34 billion) fund to support companies involved in strategic technologies such as semiconductors, AI and autos.
The government also announced new policies to lure global talent working in cutting-edge sectors, according to a report by Reuters.
“Competitiveness in advanced strategic industries has emerged to be the core of national economic security amid heightened external uncertainty under the new US administration,” the South Korean government said.
Major economies are scrambling to respond to an increasingly uncertain financial and geopolitical landscape as US President Donald Trump’s barrage of new policies and shock announcements trigger the possibility of bruising trade wars with both allies and rivals.
“With the US government imposing 25% tariffs on imports from Canada and Mexico, and an additional 10% on Chinese imports, uncertainty in the trade environment continues to expand,” acting South Korean President Choi Sang-mok said. “The ongoing tech race among major economies is also accelerating, as the industrial landscape involving advanced technologies such as chips, AI and EVs is changing rapidly.”
The state-run Korea Development Bank’s USD 34.37 billion fund will be offered to firms in national strategic industries through cheap loans and other investments, the Reuters report said.
A dozen industries, including semiconductors, future mobility, rechargeable batteries, aerospace and AI, were earlier declared “national strategic technologies” by the South Korean government.
The government may also form special purpose corporations (SPCs) with private companies to jointly invest in major facilities such as semiconductor fabs, according to a report by the Chosun Daily.
