Korea Development Bank to Establish 500 Billion KRW 'AI Korea Fund'... Final Asset Manager Selection in September

KDB Invests 150 Billion KRW... One Mid-Sized Fund of 200 Billion KRW, Three Small Funds of 100 Billion KRW Each
Leading Venture Capital Supply Across AI Value Chain

On the 10th, the creditor meeting of Taeyoung Construction was held at the headquarters of the Korea Development Bank in Yeouido, Seoul. Photo by Huh Younghan younghan@

KDB Industrial Bank announced on the 9th the launch of the 'AI Korea Fund' investment project to support AI technology development and foster the AI ecosystem.

This investment project by Industrial Bank is part of the AI-focused support program discussed at the Policy Finance Support Council on the 4th. Using 150 billion KRW invested by the Industrial Bank as seed money, funds totaling 500 billion KRW will be established, including one medium-sized fund (200 billion KRW) and three small-sized funds (100 billion KRW each).

Through the fund formation, Industrial Bank plans to proactively supply venture capital across the entire AI value chain, including AI models, AI infrastructure, and AI application services. The bank expects this to contribute to increasing efficiency and productivity across industries based on AI innovation and to overcoming structural limitations faced by the Korean economy, such as growth slowdown, low birthrate, and aging population.

Industrial Bank will close proposal submissions on the 6th of next month and plans to select four fund managers by September. An Industrial Bank official stated, “Industrial Bank plans to strengthen support so that domestic companies can secure industrial leadership in the AI sector, which is emerging as a key driver for enhancing global competitiveness,” adding, “We will do our best to actively serve as a lead investor in areas of high national necessity in line with government policy directions, laying the groundwork for revitalizing private investment.”