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South Korea is establishing a 50 trillion won ($34 billion) policy fund to support key industries like semiconductors, electric vehicles, batteries, and biopharmaceuticals as global competition and trade protectionism intensify. The government emphasized the critical role of advanced industries in national economic security, referring to this effort as a "war without gun smoke."
The fund, managed by the state-run Korea Development Bank (KDB), will provide low-interest loans and investments over the next five years to strengthen domestic companies in 12 designated strategic sectors. These industries include chips, future mobility, AI, aerospace, and biotechnology.
The initiative comes as U.S. President Donald Trump’s new administration enforces tariff threats on major industries, heightening external uncertainty. In response, South Korea is fortifying its industrial base to mitigate supply chain disruptions and enhance global competitiveness.
A previously introduced financial package for the semiconductor industry will now be integrated into the new fund, further supporting South Korea’s chipmakers amid escalating global demand. This move aligns with the country’s broader strategy to maintain leadership in high-tech industries while securing long-term economic stability.
