The fund, tentatively named the "Strategic Advanced Industry Fund," will be managed by the state-run Korea Development Bank (KDB) and will be double the size of the country’s existing semiconductor support program, which currently stands at 17 trillion won.
"We will swiftly prepare detailed plans for the fund's establishment and discuss related legal amendments with parliament in March," said Acting President Choi Sang-mok during a ministerial meeting on Wednesday.
The initiative aims to provide low-interest loans and equity investments to nurture South Korea’s strategic industries, particularly small and medium-sized enterprises in the materials, parts, and equipment sectors.
South Korea is also accelerating its artificial intelligence ambitions, with plans to fast-track the launch of a national AI computing center. This month, the government will convene a policy committee to devise strategies that will position the country as a global leader in AI development.
The move comes as Seoul scrambles to shield its high-tech industries from expected challenges under the second Trump administration, which is widely anticipated to adopt even stronger "America First" trade policies.
The announcement was made during a high-level ministerial meeting that also addressed concerns over the impact of the new U.S. administration on various industries and South Korea’s ongoing shift to low-carbon energy solutions.
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