Resolution by the National Growth Fund's Fund Management Deliberation Committee
100 Billion Won in Long-Term Loans for Ulsan Lithium Sulfide Plant
Samsung Electronics' AI semiconductor cluster construction at its Pyeongtaek Plant 5 and ISU Specialty Chemicals' next-generation secondary battery material plant construction project in Ulsan have been selected as the first projects to receive "ultra-low interest loans" from the National Growth Fund. The total support comes to 2.6 trillion won.
Last December at the Korea Development Bank in Yeouido, Seoul, Lee Eokwon, Chairman of the Financial Services Commission (third from left), Seo Jungjin, Chairman of Celltrion, Park Hyunju, Chairman of Mirae Asset, and other key attendees are taking part in a commemorative performance for the launch ceremony. 2025.12.11 Photo by Yoon Dongju
The Financial Services Commission announced that the Fund Management Deliberation Committee of the National Growth Fund, held on the 26th, approved an agenda item to this effect.
Previously, the Financial Services Commission had approved funding last month for the Shinan-Uui offshore wind power generation project, one of the seven first-round mega projects announced at the end of last year. With this latest approval of additional funding for two more projects, the provision of low-interest loans through the Advanced Strategic Industry Fund has entered full swing.
The Samsung Electronics Pyeongtaek Line 5 AI semiconductor cluster construction project supported this time by the National Growth Fund involves a total project cost of 60 trillion won. For the first-phase facility investment currently being pursued by Samsung Electronics, the total amount is 8.8 trillion won, of which 6.3 trillion won will be financed internally by the company, while the remaining 2.5 trillion won will be provided over five years at low interest rates by the Advanced Strategic Industry Fund and the five major commercial banks. The interest rate is at the level of Treasury bonds for the Advanced Strategic Industry Fund, and in the 3% range for the commercial banks.
Backed by this large-scale support, Samsung Electronics will move up its facility operation schedule from around 2030 to 2028. The Financial Services Commission explained that this is expected to strengthen the company's competitiveness in next-generation high-bandwidth memory (HBM) and AI semiconductor foundry (contract manufacturing).
On the back of this support, Samsung Electronics will establish, in cooperation with the Korea Credit Guarantee Fund, a special guarantee program for partner companies worth up to 200 billion won. It will also pilot the introduction of equipment from domestic partners for each production process to enhance technological capabilities, while at the same time improving the prospects for localization of advanced materials, parts, and equipment.
ISU Specialty Chemicals' next-generation secondary battery material plant project in Ulsan has also been included among the beneficiaries of this support. The core of this project is to build a lithium sulfide (Li2S) production plant in Onsan-eup, Ulju-gun, Ulsan. Lithium sulfide is a key material for all-solid-state batteries, and ISU Specialty Chemicals holds technology based on hydrogen sulfide purification as well as patents for mass production of high-purity lithium sulfide.
The Advanced Strategic Industry Fund will provide 100 billion won of the funds needed to build the plant as a long-term loan over 10 years at an interest rate in the low 3% range. This is expected to strengthen the competitiveness of the global all-solid-state battery supply chain.
An official at the Financial Services Commission said, "The seven projects included in the first-round mega projects of the National Growth Fund are being approved expeditiously, taking into account their level of progress and the timing of their funding needs."
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