▲ The logo of the Financial Services Commission (FSC) is seen in this photo provided by the FSC. (PHOTO NOT FOR SALE) (Yonhap)

financial regulator-growth fund

Financial regulator to expand National Growth Fund to secure competitiveness in key sectors

SEOUL, July 15 (Yonhap) -- South Korea's financial regulator said Wednesday it plans to expand the National Growth Fund, a mega-sized investment fund aimed at nurturing key industries, to 200 trillion won (US$134.1 billion) over the next five years to ensure a competitive edge in advanced sectors.

The Financial Services Commission (FSC) unveiled the plan during a policy briefing to President Lee Jae Myung.

The National Growth Fund was launched late last year, aiming to foster strategic high-tech industries, including artificial intelligence (AI), semiconductors and renewable energy.

The government had initially planned to raise up to 150 trillion won from both the private and public sectors, and operate the fund over five years.

The FSC said it now plans to scale up the fund by 50 trillion won and expand its beneficiaries to companies in new strategic industries, such as aerospace.

As a result, more than 40 trillion won will be invested annually, the FSC added.

To support long-term research and development (R&D) in high-tech sectors, the FSC plans to establish an 880 billion-won technology investment fund with a maturity of more than 10 years.

As part of the National Growth Fund initiative, the FSC will offer a 600 billion-won investment fund to the public in September, featuring tax breaks and loss protection, following a first round of offerings in May.

To boost the domestic capital market, the FSC said it will step up marketing and promotional activities to attract more foreign investment, including holding investor relations (IR) events in the second half of the year.

The government also plans to draw up a road map in October to shorten the settlement cycle for securities transactions.

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