National Growth Fund 150 Trillion+α... Foundation for Korea's Future

President Lee Jae-myung has decided to significantly expand the National Growth Fund, originally planned at 100 trillion won, to over 150 trillion won. This decision aligns with the trend of major countries like the United States and China increasing investments to foster advanced strategic industries, recognizing the need for new vitality in the Korean economy. The National Growth Fund is expected to function as a growth engine for the re-emergence of Korea's economy through industrial restructuring.

On the 10th, President Lee held the National Growth Fund National Report Conference at Front One in Mapo, Seoul, stating, "The National Growth Fund will breathe new life into our stagnant industries," and emphasized, "I am confident that it will become the foundation for Korea's future, created together by the people, government, and the business community."

The 150 trillion won National Growth Fund will consist of 75 trillion won from the Advanced Strategic Industry Fund and 75 trillion won from private, public, and financial sector funds. The 150 trillion won will be provided to the advanced strategic industry and related ecosystems over the next 5 years, aiming to strengthen advanced industry competitiveness, scale up venture and technology companies, and create regional growth and jobs. Based on this, an added value inducement effect of up to 125 trillion won is expected.

The National Growth Fund is expected to be structured to enable comprehensive support, including △direct equity investment △indirect equity investment △infrastructure investment and national bond-level △ultra-low interest loan support. The Advanced Strategic Industry Fund, a pillar of the National Growth Fund, is planned to launch in early December.

President Lee stated, "It is important that the National Growth Fund we are pursuing now shares the opportunities and fruits of growth evenly," and requested, "I ask for active participation from all those involved in industry, finance, and ventures."

In the discussion following the National Report Conference, the key to the success of the National Growth Fund was identified as the discernment to select promising investment companies and the demand to ease the separation of banking and commerce that prevents joint investments by large corporations and corporate venture capital (CVC).

Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry, explained, "The 150 trillion won National Growth Fund should focus on investing in areas that excel," and "Success depends on who has the foresight to choose wisely." Seo Jeong-jin, Chairman of Celltrion, requested, "To increase the success rate of startups, it is necessary to expand the parent fund, strengthen the role of investment banks in the financial sector, and provide joint incubation by large corporations," and added, "However, due to the separation of banking and commerce, it is difficult for large corporations to freely invest in nurturing juniors. Please consider allowing a positive approach with safety devices to prevent abuse."

syj@fnnews.com Seo Young-jun, Seong Seok-woo reporters