Government Establishes New 420 Billion KRW Industrial Technology Innovation Fund to Support Technological Innovation

[Asia Economy Sejong=Reporter Dongwoo Lee] The government is establishing a new 'Industrial Technology Innovation Fund' worth 420 billion KRW to support corporate innovation growth, carbon neutrality, and digital transformation.

On the 12th, the Ministry of Trade, Industry and Energy announced that it held a fund establishment agreement ceremony for the Industrial Technology Innovation Fund at the InterContinental Seoul COEX in Gangnam-gu, Seoul, together with IBK Industrial Bank, Shinhan Bank, Korea Growth Investment Corporation, and others.

The ministry plans to create a parent fund worth 150 billion KRW, including contributions from IBK Industrial Bank (60 billion KRW), Shinhan Bank (40 billion KRW), and the government’s recovered investment funds (50 billion KRW) from R&D support funds, then add external matching funds to operate a total of 420 billion KRW in sub-funds.

Specifically, it will support innovative corporate growth by establishing an 80 billion KRW 'CVC-linked Scale-up Fund' to strengthen the industrial value chain through inter-company cooperation, a 140 billion KRW 'Mid-sized Enterprise Leap Support Fund' to support open innovation for small and medium-sized enterprises (SMEs) and mid-sized companies, and a 20 billion KRW 'SoBuJang Cluster Support Fund' to build a stable domestic supply chain for materials, parts, and equipment.

To promote industrial transformation, a 'Carbon Neutrality and Energy Innovation Venture Fund' and an 'Industrial Digital Transformation Fund' will be established with 100 billion KRW and 80 billion KRW respectively, supporting innovation activities in carbon-neutral process technologies, energy innovation ventures, and promoting convergence between industries through digital technologies.

The Industrial Technology Innovation Fund will begin raising external funds and start full-scale investment activities next year once Korea Growth Investment Corporation, the parent fund operator, completes the selection of sub-fund operators within this year.

Hwang Soo-sung, Director of Industrial Innovation Growth at the Ministry of Trade, Industry and Energy, said, "The ministry will continuously support private companies' technological innovation activities by establishing funds worth over 1 trillion KRW over the next three years starting this year."

This content was produced with the assistance of AI translation services.