"Security Industry Promotion" National Police Agency, Establishes 20 Billion Fund

[Financial News] To foster the security industry ecosystem, the government and private sector are joining forces to create a fund worth 20 billion won.
The National Police Agency announced on the 1st that it will jointly establish the 'National Safety Industry Fund' with the Ministry of the Interior and Safety and invest in related companies. 
The goal is to nurture venture and small and medium-sized enterprises possessing advanced technologies such as artificial intelligence (AI) in the security and disaster industry sectors. It focuses on supporting startups, technology commercialization, and companies needing overseas market access. The police and the Ministry of Economy and Finance have decided to define the related industry as the 'National Safety Industry'.
In the first year of fund creation, the government will inject 10 billion won from the budget and attract 10 billion won in private capital. The scale will be expanded annually based on performance. To encourage private capital participation, the main investment ratio and benchmark return rate will be set by referring to similar policy funds.
The security industry continues to grow. According to global market research firm Fortune Business Insights, the global market size, which was 592 trillion won in 2020, is expected to increase to 1183 trillion won by 2028. As of 2023, the domestic security industry market is 38 trillion won, with 14,189 related companies. The disaster safety industry and firefighting industry included in the fund's investment targets are 59 trillion won and 19 trillion won, respectively.
The police are pushing for the enactment of the 'Security Industry Promotion Act' to promote the security industry. Shin Jung-hoon of the Democratic Party of Korea and Yoon Jae-ok of the People Power Party proposed related legislation in December last year. The related research and development (R&D) budget has significantly increased from 2.2 billion won in 2015 to 64 billion won this year.
Choi Joo-won, Director of the Future Security Policy Bureau of the National Police Agency, said, "The fund will be a growth ladder and a key policy tool for the security industry to leap forward as a second defense industry driving national security and industrial competitiveness."
unsaid@fnnews.com Kang Myung-yeon Reporter