Addition of 7 Industry Sectors Including Aerospace and Defense
[Asia Economy Reporter Yu Je-hoon] The government is expanding the policy finance supply target amount for the five major strategic sectors this year from the existing 81 trillion won to 91 trillion won. In addition, an innovation growth fund investing in new industries and innovative ventures will be established with a total scale of 3 trillion won.
On the afternoon of the 20th, the Financial Services Commission announced that it held the '2nd Policy Finance Support Council' at the Bankers' Hall in Jung-gu, Seoul, together with related industrial policy ministries including the Ministry of Trade, Industry and Energy, the Ministry of Science and ICT, the Ministry of Health and Welfare, the Ministry of Land, Infrastructure and Transport, the Ministry of Culture, Sports and Tourism, the Ministry of SMEs and Startups, the Ministry of Agriculture, Food and Rural Affairs, the Ministry of Oceans and Fisheries, and the Defense Acquisition Program Administration, as well as policy finance institutions.
At this meeting chaired by Kim So-young, Vice Chairman of the Financial Services Commission, the council selected seven additional industries as support targets reflecting recent industrial issues: aerospace, carbon materials, quantum technology, defense industry, new agricultural food industry, and core carbon-neutral implementation sectors. Accordingly, the policy finance supply target amount for the five major strategic sectors, including these seven industries, will be expanded by 10 trillion won from the existing 81 trillion won to 91 trillion won.
Furthermore, the council decided to establish an innovation growth fund with a total scale of 3 trillion won to prepare for the possibility of a slowdown in growth due to the recent triple high (high interest rates, high exchange rates, high oil prices) complex crisis. The innovation growth fund is a policy fund investing in new industries with high growth potential and innovative ventures, and will be composed of an innovation industry fund and a growth support fund (each 1.5 trillion won).
The innovation industry fund will focus investments on innovation growth joint standard sectors and national strategic industry sectors such as New Growth 4.0, while the growth support fund will invest in the mid-to-late growth stages where private capital formation is sluggish. The innovation growth joint standard refers to a list of core items of new and promising industries jointly selected by policy finance institutions, and the mid-to-late growth stage means the stage beyond startup and growth phases requiring large-scale additional investment.
The council will also reorganize the composition system so that the innovation growth joint standard becomes the 'support criteria for core items of government ministries' strategic industries discussed through the council.' Moreover, during the operation of the standards, policy finance institutions, relevant ministries, participating ministries of the council, and industry-specific associations will be included in the discussion system.
Accordingly, the council will reclassify the existing innovation growth joint standard items according to the four major initiatives and add core items with high industrial inducement effects and growth potential to the standards. As a result, the existing 296 items will be reorganized into 284 items.
Vice Chairman Kim said, "The council will play a key role in responding to rapidly changing economic issues and enabling prompt financial support for new industrial strategies."
Kim So-young, Vice Chairman of the Financial Services Commission, is delivering opening remarks at the '1st Task Force on Improvement of Banking Sector Management, Business Practices, and Systems' held at the Government Seoul Office Building on the 22nd. Photo by Dongju Yoon doso7@
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