South Korea will establish a 50-trillion-won ($34 billion) fund to support strategic industries, including semiconductors, AI, and electric vehicle (EV) batteries, acting President Choi Sang-mok announced on Wednesday.
This move comes amid rising trade tensions, particularly after U.S. President Donald Trump imposed significant tariffs on imports from Canada, Mexico, and China, creating further uncertainty in global trade.
Choi highlighted the accelerating global tech race, emphasizing the need for South Korea to maintain a competitive edge in key sectors.
“The industrial landscape, particularly in advanced technologies like chips, AI, and EVs, is changing rapidly. First and foremost, we should be ahead of the curve,” he said during a ministerial meeting on economic affairs and industrial competitiveness.
The government plans to provide low-interest loans and equity investments to companies, regardless of their size, in strategic sectors. The focus will be on fostering long-term infrastructure development and research in critical industries such as semiconductors, AI, EV batteries, and biotechnology.
This $34 billion policy fund will be managed by the state-run Korea Development Bank and will target financial support for companies in national strategic industries over the next five years. The initiative also includes attracting global talent by offering “top-tier” visas and permanent residency to skilled professionals with experience in advanced industries.
The South Korean government has designated 12 sectors as “national strategic technologies,” including semiconductors, future mobility, rechargeable batteries, biopharmaceuticals, and AI, and plans to offer targeted financial support and protection to these industries in response to growing global competition and the fragmentation of supply chains.
As part of this initiative, a financial support package for the semiconductor industry, introduced last year, will also be integrated into the new fund. The government sees the development of these technologies as essential for ensuring national economic security amidst increased external uncertainty and global protectionism.
