Korea to invest up to $3.7 bn in fund that supports advanced industries

Choi Sang-mok, Deputy Prime Minister, speaks at the Supply Chain Stabilization Fund launch at Korea Eximbank in Seoul on the 5th. [Photo by Yonhap]

The South Korean government plans to create a fund that supports high-tech and minerals industries, with plans to invest up to 5 trillion won ($3.7 billion) later this year.

The fund is to minimize economic damage by preventing and swiftly dealing with potential supply chain issues.

The fund’s launch ceremony was held on Thursday at the Export-Import Bank of Korea in Yeouido, Seoul.

The fund will be managed by the Export-Import Bank, with a focus on high-tech strategic industries such as semiconductors and secondary battery manufacturers, as well as resource sectors that encompass energy and key minerals.

Corporate beneficiaries cannot use the money for shareholder dividends, stock buybacks, wage increases, and other purposes that have nothing to do with supply chains.