S. Korea announces US$ 23 bil. fund to strengthen next-generation tech

In other news.

At least 34 trillion won has been earmarked to support critical industries as Korea seeks a strategic edge over rising global competition.

Our Choi Min-jung covers this initiative.

South Korea has unveiled an ambitious plan to bolster the country's industrial competitiveness, by establishing a "Strategic Advanced Industry Fund", worth over 34 trillion Korean won, or around 23 billion U.S. dollars.

The initiative, announced during a high-level ministerial meeting on Wednesday, aims to support critical industries, including semiconductors, batteries, automobiles, shipbuilding, and steel.

Acting President and Finance Minister Choi Sang-mok, emphasized industrial competitiveness as the backbone of South Korea's economy, urging swift action to maintain leadership in key sectors.

"This fund will provide low-interest loans, equity investments, and other financial support to businesses."

The fund will be more than twice the size of the current 17-trillion won semiconductor financing program.

It will focus on next-generation technologies, including AI-driven automation, advanced materials, and sustainable energy solutions.

Small and mid-sized companies in the materials and equipment industries will receive increased financial support.

The announcement comes amid escalating global trade uncertainties, including U.S. tariff adjustments and China's rising dominance in AI and advanced manufacturing.

"A Chinese company recently unveiled the AI model "DeepSeek R1," which delivers high performance at a low cost, coming as a fresh shock in the industry. The global AI race is evolving to a more complex competition."

The government has pledged speedy implementation of the fund,

with concrete plans to be finalized by March in coordination with the National Assembly.

Choi Min-jung, Arirang News.