The government will additionally establish a policy fund worth a total of 220 billion KRW to strengthen the competitiveness of the semiconductor and nuclear power industries. Of this, 120 billion KRW will be newly invested in the ‘Semiconductor Ecosystem Fund’ to reinforce the semiconductor ecosystem, and a new ‘Nuclear Industry Growth Fund’ worth 100 billion KRW will be created to support the growth of the nuclear power industry.
On the 26th, the Financial Services Commission finalized these policy finance support measures at the 10th Policy Finance Support Council chaired by Vice Chairman Kim So-young. The council was attended by related ministries such as the Ministry of Trade, Industry and Energy and the Ministry of Science and ICT, as well as the five major policy finance institutions: Korea Development Bank, Industrial Bank of Korea, Korea Credit Guarantee Fund, Korea Technology Finance Corporation, and Export-Import Bank of Korea.
Semiconductor Ecosystem Fund Expanded to 1.1 Trillion KRW
First, the Semiconductor Ecosystem Fund will be expanded from the existing 300 billion KRW to 1.1 trillion KRW. This fund has been operating since it was announced at the 3rd Policy Finance Support Council in June 2023, and from this year, it has evolved into a structure where government finances are injected.
This year, with the semiconductor ecosystem fund budget reflected in the National Assembly, 120 billion KRW will be newly raised. The government secured a total of 55 billion KRW in public funds through additional contributions from the Korea Development Bank, Industrial Bank of Korea, and the Growth Ladder Fund. Adding private investments, the fund will be operated at a scale of 1.1 trillion KRW. This fund will focus on expanding investments in fabless (semiconductor design) and materials, parts, and equipment (MPE) companies to strengthen the domestic semiconductor ecosystem.
New Nuclear Industry Growth Fund Established... Securing Future Growth Engines such as SMR
The government will establish a ‘Nuclear Industry Growth Fund’ worth 100 billion KRW to strengthen the nuclear ecosystem and foster next-generation nuclear industries such as Small Modular Reactors (SMR).
This fund will be created by attracting more than 30 billion KRW in private investment based on 70 billion KRW in public funds, including 35 billion KRW in government finances, 5 billion KRW from the Korea Development Bank, and 30 billion KRW from Korea Hydro & Nuclear Power. It will invest in small and medium-sized nuclear-related companies, with a particular focus on making a certain level of investment in SMR companies. Through this, the government plans to enhance the global competitiveness of domestic nuclear companies and strengthen the foundation for nuclear power exports.
In addition to this fund, the government will expand cooperation with the financial sector to support the nuclear industry. The Export-Import Bank of Korea operates financial programs to assist nuclear-related companies in overseas expansion, and the Korea Development Bank and Korea Technology Finance Corporation also plan to increase support through guarantees and loans.
Early Execution of Policy Finance... 75.8 Trillion KRW Supplied
The government is focusing on the early execution of policy finance to respond to the economy. As of the 21st, a total of 75.8 trillion KRW has been supplied. This is an increase of 8.7 trillion KRW (13%) compared to the same period last year.
In particular, the five major policy finance institutions?Korea Development Bank (22.8 trillion KRW), Industrial Bank of Korea (21.8 trillion KRW), Korea Credit Guarantee Fund (12.2 trillion KRW), Korea Technology Finance Corporation (10.6 trillion KRW), and Export-Import Bank of Korea (8.4 trillion KRW)?are playing key roles. The government plans to supply more than 122 trillion KRW by the end of April, which is 13 trillion KRW more than the same period last year (109.3 trillion KRW), and to execute 60% of the annual plan within the first half of the year.
Vice Chairman Kim said, “Semiconductors and nuclear power are core industries of the future,” adding, “We hope this policy fund will contribute to enhancing the competitiveness of related companies and strengthening their position in the global market.”
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