Government Aims for Over 1 Trillion Won Fund Through Public-Private Partnership

On Feb, 4, the Ministry of Science and ICT announced the signing of a memorandum of understanding (MOU) for the establishment of the “Science and Technology Innovation Fund” at TP Tower in Yeongdeungpo-gu, Seoul. This initiative marks a significant step in South Korea’s efforts to bolster its research and development (R&D) capabilities in core technologies, including semiconductors and artificial intelligence (AI). The government plans to create a fund exceeding 1 trillion won to support these endeavors, reflecting the country’s commitment to maintaining its competitive edge in the global technology landscape.

The fund will initially be established at a scale of 494 billion won, with substantial contributions from three major banks: Shinhan Bank, Industrial Bank of Korea, and Woori Bank. Shinhan Bank will contribute 250 billion won, Industrial Bank of Korea 180 billion won, and Woori Bank 64 billion won. The management of the fund will be overseen by Shinhan Asset Management and the National Research Foundation of Korea, ensuring that the investments are strategically directed towards the 12 national strategic technologies, including semiconductors and AI.

Over the next four years, the fund is expected to grow to over 1 trillion won through the creation of a parent fund of 125 billion won annually, matched with private capital. Each fund will be operated for eight years before being liquidated, providing a long-term investment horizon for the commercialization of innovative technologies.

Minister of Science and ICT Yoo Sang-im emphasized the fund’s pivotal role in advancing South Korea’s technological capabilities. “The Science and Technology Innovation Fund will play a crucial role in commercializing innovative technologies domestically and supporting our technologies to gain competitiveness in the international market,” he stated. He further added, “The Ministry of Science and ICT, together with the private sector, will lead investments and innovations to enhance technology commercialization and global competitiveness.”

Michael Herh, ‘Science and Technology Innovation Fund’ Launched to Boost R&D in Semiconductors and AI – Businesskorea, 4th February 2025