National Growth Fund reaches 2.83 trillion won in direct investments

South Korea's National Growth Fund has reached 2.83 trillion won in direct investments as of late August, achieving 94% of its 3 trillion won annual target. The fund focuses on high-growth sectors including artificial intelligence (AI), semiconductors, biotechnology, and robotics. Key recipients include AI chip firms Rebellion, Upstage, and FuriosaAI, as well as Ligachem Bio and Wonik Robotics.

As capital deployment accelerates, the focus shifts to exit strategies. Unlike loans, these direct equity investments require successful exits through initial public offerings (IPOs), third-party share sales, or conversions to common stock to ensure a virtuous cycle of capital. For instance, Rebellion has already completed a pre-IPO at a valuation of approximately 3.4 trillion won.

In conjunction with these investments, the Financial Services Commission has proposed a 2027 budget of approximately 9.24 trillion won, nearly doubling its previous allocation. This budget includes 1 trillion won dedicated to the National Growth Fund to support strategic industries. Other major allocations include 1.08 trillion won for microfinance stability and over 2 trillion won for youth asset formation programs.