A new public investment fund has been launched to encourage participation in strategic sectors, including AI and biotechnology, with the aim of generating significant sales.
The South Korean government has introduced an investment fund designed to attract public investment, targeting over 600 billion won (approximately $397 million) in sales. This initiative, announced by the Financial Services Commission (FSC), will be accessible for three weeks through various banks and securities firms. The fund focuses on sectors such as artificial intelligence, rechargeable batteries, hydrogen, and biotechnology.
FSC Chairman Lee Eog-weon emphasized the fund's potential as a lucrative investment opportunity, allowing citizens to benefit from growth in these emerging industries. To mitigate risks, the fund guarantees up to 20% coverage of losses, supported by government resources, and offers tax deductions of up to 40% for investors, or 18 million won.
This initiative is part of the broader Korea National Growth Fund, established to promote strategic industries like AI, biotech, and semiconductors, with a goal of raising up to 150 trillion won over the next five years. The fund represents a strategic move to bolster investment in vital sectors that are expected to drive future economic growth.