South Korean industrial and strategic growth funding

South Korea has implemented several financial initiatives to support industrial growth and strategic sectors.

In late August, the Ministry of Trade, Industry and Energy launched the ‘Industrial R&D Innovative Enterprise Preferential Package Finance Program’. This 705 billion won initiative aims to assist companies in commercializing industrial technology and expanding globally. The program utilizes guarantees from the Korea Technology Finance Corporation and the Korea Trade Insurance Corporation, focusing on business potential rather than traditional credit. It offers working capital and export-import guarantees, with enhanced limits for companies outside the capital region.

Following this, the second round of the National Participation Growth Fund was launched to raise 600 billion won for advanced strategic industries. This iteration introduced structural changes, such as prioritizing low-income citizens for 50% of the fund and offering tax benefits including a 40% income deduction. While the fund offers government-backed loss mitigation, authorities noted it remains a high-risk product. Initial sales saw approximately 214 billion won subscribed through various banks and securities firms.