The Financial Services Commission announced it will provide an additional 370 billion won (approximately $370 million) through the National Growth Fund to enhance power infrastructure for advanced industries and expand the semiconductor supply chain.
On June 25, the commission approved investment and low-interest loan proposals for the wind power project in Yeongyang, North Gyeongsang Province, as well as for LS Cable & System and Simtek during a meeting of the National Growth Fund Management Committee. This funding aims to address the increasing power demand driven by the expansion of AI data centers, improve energy infrastructure, and strengthen the competitiveness of semiconductor materials, components, and equipment.
The largest allocation is for the wind power project in Yeongyang, where GS E&R and Naver plan to construct a 72 MW wind farm. The generated power will supply Naver's data centers, including 'Gak Sejong' and 'Gak Chuncheon.' Of the total project cost of 270 billion won, 60 billion won will be supported by the Advanced Strategic Industry Fund through a long-term loan over 19 years.
LS Cable & System will receive 80 billion won to expand its production facilities and testing grounds for high-voltage undersea cables in Donghae, Gangwon Province. This investment is in response to the growing demand for undersea cables due to the expansion of offshore wind power and transmission networks.
Simtek, a semiconductor packaging substrate company based in Cheongju, North Chungcheong Province, will receive 20 billion won in low-interest loans to fund the expansion of its production facilities. The Financial Services Commission believes this will enhance the competitiveness of the core component supply chain in line with the growing memory semiconductor market.
Including these three projects and the 720 billion won from the National Participation Growth Fund, the National Growth Fund has now completed approvals and formations for a total of 19 projects, amounting to 13.6 trillion won.
* This article has been translated by AI.
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