Industrial Growth Fund Exceeding 1 Trillion Won Launched... Fostering AI and Advanced Manufacturing Innovators

Ministry Launches Largest-Ever Industrial Growth Fund Worth 1.115 Trillion Won
"M.AX Innovation Fund" to Invest in Humanoids, AI Factories, and Autonomous Ships
700 Billion Won in Preferential Finance for Outstanding Industrial R&D Companies

Kim Junggwan, Minister of Trade, Industry and Energy (center), is taking a commemorative photo on the 18th at Korea Growth Finance in Yeouido, Seoul, after signing a business agreement with representatives of financial and related organizations to prepare a preferential financial package program for innovative R&D companies under the Ministry of Trade, Industry and Energy. Ministry of Trade, Industry and Energy.

The Ministry of Trade, Industry and Energy is launching the largest-ever policy-type industrial fund to support the transition of manufacturing to artificial intelligence (AI), foster regional industries, and promote the growth of innovative companies. In addition, a new preferential financial program worth 700 billion won, including guarantees and loans, will be introduced for outstanding industrial research and development (R&D) companies.

On May 18, the Ministry held the "Industrial Growth Fund Launch Ceremony and Industrial Finance Strategy Meeting" at Korea Growth Finance in Yeouido, Seoul, presided over by Minister Kim Jungkwan.

The newly launched Industrial Growth Fund is the third iteration, which expands and reorganizes the existing Industrial Technology Innovation Fund. It is a policy-type private fund established based on investments from a dedicated bank that deposits and manages the Ministry's R&D funds.

The Ministry plans to operate the Industrial Growth Fund from 2026 to 2028, with a total investment of 1.115 trillion won, including 620 billion won from Hana Bank and 495 billion won from Industrial Bank of Korea. This is the largest scale in history.

Moving beyond its previous R&D-centered investments, the Ministry intends to broaden the fund’s role by linking investments to major industrial policies such as the transition to manufacturing AI (M.AX), balanced regional development, and the search for new growth engines. The Ministry also plans to further expand the fund by attracting additional private matching funds and joint investments from demand-side companies, evolving it into a collaborative platform for the industrial ecosystem.

The first sub-fund under the Industrial Growth Fund will be the "M.AX Industrial Transformation Innovation Fund." This fund will invest in companies in the convergence of manufacturing and AI, such as humanoids, AI factories, future mobility, and autonomous ships. Based on an anchor investment of 100 billion won from the dedicated bank and additional private capital, the Ministry plans to expand the fund to up to 500 billion won. The Ministry will announce a call for fund managers next month.

In addition, the Ministry will supply a preferential financial program worth approximately 700 billion won over the next three years for outstanding industrial R&D companies. Hana Bank and Industrial Bank of Korea will make special contributions totaling 47 billion won to Korea Technology Finance Corporation and Korea Trade Insurance Corporation, which will provide technology guarantees, trade insurance, and other guarantees based on these contributions.

The preferential financial program will operate in two ways: "project-based R&D commercialization guarantees" and "R&D innovative company export-import trade finance." The program will either guarantee commercialization funds through R&D project-based evaluations, or support exporters and companies expanding overseas with loans for production and raw material imports. These programs are scheduled to be supplied from July, following detailed agreements.

At the strategy meeting, financial institutions, venture capitalists, companies in the AI and robotics sectors, and R&D specialists gathered to discuss the direction of industrial finance development. Participating companies highlighted that fund investments played a key role in technology development, business expansion, and the initial public offering (IPO) preparation process, and they requested comprehensive support for follow-up R&D, talent development, and regulatory easing.

Minister Kim stated, "Investment in innovative companies is a promise that the financial sector, industry, and government will join together in the journey of corporate growth and share both risks and rewards," adding, "By expanding the supply of industrial finance, we will accelerate innovation in Korean industry, including the convergence of AI and manufacturing and the co-development of regional economies."

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