First Investment Recipient of Advanced Strategic Industry Fund to Be Decided at Industrial Competitiveness Meeting

Advanced Strategic Industry Fund Set to Launch on December 10

The government has decided that the first company to receive investment from the Advanced Strategic Industry Fund will be selected at the Industrial Competitiveness Enhancement Ministers' Meeting. While the execution of the fund is typically determined by the Fund Management Deliberation Committee, the government has chosen to directly select the first investment recipient at the ministers' meeting, considering the nation's future strategy and economic security.

According to financial authorities and the financial industry on November 10, the Advanced Strategic Industry Fund is scheduled to be officially launched on December 10. Currently, the Korea Development Bank, in cooperation with the Financial Services Commission and the Ministry of Trade, Industry and Energy, is reviewing a list of candidate companies for investment.

Multiple officials from the financial authorities stated, "The Korea Development Bank is currently conducting investment briefings for companies, and many firms across various sectors have already shown interest," adding, "Given the importance of this matter, the agenda for the first investment recipient will be brought to the ministers' meeting for a decision."

The Advanced Strategic Industry Fund is a large-scale project that symbolizes the "productive finance" policy of the Lee Jaemyung administration. To respond to the global technological hegemony competition, the fund will be established within the Korea Development Bank with a maximum size of 50 trillion won over the next five years. It will provide broad support across advanced core industries such as artificial intelligence (AI), semiconductors, defense, and robotics, covering large corporations as well as mid-sized and small enterprises.

The support methods have also been differentiated from existing programs. The fund plans to offer customized support tailored to company needs, including ultra-low interest loans at government bond rates and equity investments through the establishment of special purpose companies (SPCs). For example, if a company establishes large-scale process facilities such as a fab, an SPC will be set up jointly with the supported company, and the fund (through a fund investment) will hold a certain level of equity. However, the Korea Development Bank will maintain its principle of non-management participation, refraining from exercising voting rights even after the investment.

Jensen Huang, CEO of Nvidia, Lee Jae-yong, Chairman of Samsung Electronics, and Chung Eui-sun, Chairman of Hyundai Motor Group, attended Nvidia's 25th anniversary event for the launch of the GeForce graphics card (GPU) held at COEX in Seoul on October 30, 2025. 10.30 [Joint Coverage] Yonhap News Agency

With one month remaining before the launch of the Advanced Strategic Industry Fund, interest is growing regarding which sector will be the first to receive investment. Both the business and financial sectors believe that AI or semiconductors are strong candidates. One of the documents adopted at the recent Asia-Pacific Economic Cooperation (APEC) summit was the "AI Initiative." This document represents APEC's first formalized joint vision for AI and is also the first leaders' agreement on AI with participation from both the United States and China.

During the APEC summit, Jensen Huang, CEO of Nvidia, visited Korea, met with Samsung Electronics and Hyundai Motor, and pledged to prioritize the allocation of 260,000 graphics processing units (GPUs) to Korea. This development further supports the expectation that AI or semiconductors will be selected. In particular, as global competition for AI investment among major companies intensifies and investment scales reach tens of trillions of won, there is a growing consensus that government support is essential, given the limitations of relying solely on corporate funds. As a result, there are increasing expectations that AI or semiconductors will be chosen as the first investment sector for the Advanced Strategic Industry Fund.

An official from the Financial Services Commission commented, "Alongside preparations for the launch of the Advanced Strategic Industry Fund, we are also fairly reviewing potential investment targets."