Government to Provide 3.5 Trillion Won to AI Companies... Increased Support for Cloud, Robots, and Autonomous Driving

Financial Services Commission Holds 7th Policy Finance Support Council Meeting

The government discussed a plan to provide financial support worth 3.5 trillion KRW in the field of artificial intelligence (AI). By the end of this year, preferential loans will be offered to related companies through the Korea Development Bank, and an AI fund will be established.

On the 4th, the Financial Services Commission held the 7th Policy Finance Support Council chaired by Vice Chairman Kim So-young, with participation from government ministries (Ministry of Science and ICT, Ministry of Trade, Industry and Energy, Ministry of SMEs and Startups, Ministry of Land, Infrastructure and Transport, Korean Intellectual Property Office) and policy financial institutions (Korea Development Bank, Industrial Bank of Korea, Korea Credit Guarantee Fund, etc.) to discuss these matters. Since its inception in 2022, this council has linked national industrial strategies with policy finance to efficiently supply policy funds to necessary sectors.

At this meeting, a low-interest loan program worth 3 trillion KRW and a new fund worth 500 billion KRW for the AI sector were discussed. First, within the Korea Development Bank’s advanced industry support program called the ‘Super-gap Industry Support Program,’ an AI sector will be newly established to supply funds up to 3 trillion KRW by the end of this year. Companies engaged in AI models, cloud, robotics, and autonomous driving will receive funds at preferential interest rates up to 1.2 percentage points lower. This will be provided through the Korea Development Bank in July.

A new ‘AI Korea Fund’ worth 500 billion KRW will also be created to support AI technology development and ecosystem cultivation. The fund will be established and launched by attracting 150 billion KRW from the Korea Development Bank and 350 billion KRW from private capital to support companies engaged in AI cloud and model development.

Meanwhile, the council also discussed the current status of policy finance supply. Until May of this year, policy financial institutions such as the Korea Development Bank, Industrial Bank of Korea, and Korea Credit Guarantee Fund supplied 54.5 trillion KRW to five key strategic sectors (global super-gap industry cultivation, future promising industry support, industrial structure advancement, venture and mid-sized company growth, and resolution of corporate management difficulties). This amount corresponds to 53.2% of the annual target of 102 trillion KRW. The execution rate, reflecting the elapsed period (41.7%), was exceeded.

Vice Chairman Kim said, “AI companies with promising technological capabilities will have opportunities to expand their businesses significantly through investment or to transition their business stages by welcoming new owners.” She added, “We hope that the rapid expansion of policy finance support will empower our companies fiercely competing to take the lead in the AI industry.”