South Korea is considering the creation of a 150 trillion won ($110 billion) National Growth Fund to support high-tech industries, part of President Lee Jae-myung's campaign pledge to make the country one of the world's top five economies and a top-three AI hub. The fund, expected to launch by late 2025 or early 2026, will exceed the originally planned 100 trillion won. It is designed as a catalyst to attract up to 100 trillion won in private capital , alongside government resources, channeling investment into early-stage tech firms and core industries such as aerospace, AI, biotech, defense, semiconductors, and energy. A 50 trillion won high-tech industry fund , managed by the state-run Korea Development Bank (KDB) , will serve as a “fund of funds,” with sub-funds targeting patents, technology infrastructure, venture and deep-tech companies, and scale-ups. KDB will act as a junior equity investor , covering losses before other participants, while commercial financial institutions may invest in subordinated tranches or provide low-interest loans. The initiative aligns with President Lee’s “3.3.5 vision” : place Korea among the top 3 AI nations , raise economic growth potential to 3% from the current 1.8% , and elevate the economy into the world's top 5 . Officials argue the fund will redirect idle liquidity concentrated in real estate toward strategic industries , encouraging private-sector involvement through tax incentives . However, doubts remain about long-term effectiveness. Critics note past government-led vehicles, such as the New Deal Fund under Moon Jae-in, lost direction after administrative changes. Market observers question whether the new fund can secure the full 100 trillion won private target or maintain investment momentum beyond the current president. “There's a pressing need to channel capital into sectors with strong industrial and economic potential,” said an official at a major financial holding company. But others caution that policy-driven funds risk inefficiency and inconsistency , undermining their impact on Korea's innovation landscape.   (ICE SEOUL)

Fonte notizia: KED