South Korea on Wednesday announced the establishment of a 50 trillion won ($34 billion) policy fund designed to bolster domestic firms engaged in strategic technologies like semiconductors and automobiles, amid rising protectionism and intensifying global competitiveness.
The government emphasized that maintaining competitiveness in advanced strategic industries is pivotal for national economic security in the current climate of heightened external uncertainties, particularly under the new U.S. administration.
Since taking office in January, U.S. President Donald Trump has implemented numerous tariff threats impacting key trade partners and industries, including chips, autos, and biopharmaceuticals.
The Korea Development Bank will manage the policy fund, providing affordable loans and other investments over a period of five years, to support companies operating within these strategic industries.
To tackle the growing challenges of global competition and supply chain fragmentation, Asia’s fourth-largest economy has identified 12 sectors as “national strategic technologies” and has provided them with focused financial backing and protection. This covers industries such as semiconductors, future mobility, rechargeable batteries, biopharmaceuticals, aerospace, and artificial intelligence, among others.
