• Increase KRW 10 tln of Policy Finance for Five Major Core, Strategic Industries
    2023-03-06 hit 444

    Increase KRW 10 tln of Policy Finance for Five Major Core, Strategic Industries…

    Total Support of KRW 91 tln


    Increase KRW 10 tln of Policy Finance for Five Major Core, Strategic Industries…

    Total Support of KRW 91 tln

    Additional Supply of KRW 10 tln for Seven Industries

    including Air & Space, Carbon Materials, and Defense 

    Plan to Form Innovative Growth Fund of KRW 3 tln this Year

    Council for Policy Finance Support Held


    This year, the government provides additional support of KRW 10 tln of policy finance funds to seven industries, which include the defense, agricultural/food and new industries. On February 22, at the Korea Federation of Banks building, the Financial Supervisory Commission held the 2nd meeting of the Council for Policy Finance Support, chaired by Vice Chairman Kim So young of the Financial Supervisory Commission, and revealed that a discussion had been conducted regarding additional supplementation plans for 2023 fund supply to policy financial institutions, raising the target supply amount for the five major core, strategic areas to KRW 91 tln.


    The Council for Policy Finance Support is a council formed among policy financial institutions and industry-related ministries to supply policy funds more effectively to areas that need them. Previously, in December of last year, the government held the 1st meeting of the Council for Policy Finance Support, reflecting the governments Strategy of New Growth 4.0 and industrial policies of each ministry, to select the five major core strategic tasks. It announced that it would provide an intensive supply of a total of KRW 81 tln to related industry areas.


    The added industrial areas include air & space (KRW 300 bln), carbon materials (KRW 1.3 tln), quantum technology (KRW 40 bln), defense industry (KRW 3.1 tln), food/agricultural and new industries (KRW 2.2 tln), carbon neutrality (plastic) (KRW 2.1 tln), and carbon neutrality (cement) (KRW 1 tln). The Financial Supervisory Commission explained that “We reflected the recent industrial issues and tasks, which include improving export vitality, strategic overseas entry and strategy for new growth 4.0. The organizations that participated in the meeting also discussed a plan to form an innovative growth fund for 2023 worth KRW 3 trillion.


    KRW 1.5 tln shall be used to form an innovative industry fund to promote new industries and create growth engines. Another KRW 1.5 tln will be used to form a growth support fund to promote global unicorn ventures. The innovative growth fund, to which a total of KRW 15 tln will be provided during a period of five years, will concentrate on large scale investment in companies in the later stages of growth that experience poor market formation, in order to maximize the effect of propping up the market.


    In addition, an agreement was made to maintain the share of financial investment to about 10%, and expand incentives for private investors for the purposes of promoting the efficiency of financial means. The Korea Development Bank plans to select two companies to manage the mother fund for innovative growth by early April, and about fifteen companies to manage the baby fund by early June. On the other hand, during the meeting on this day, discussions underwent on the plan to revise the common criteria for innovative growth. The core categories with high industrial creation effect and growth potential would be revised from the previous 284 items to 296.


    Companies related to items that would be provided with support pursuant to the new common criteria can apply for the use of financial products exclusive to the innovative growth area from relevant financial institutions from the 1st of next month. “In order to respond to the ever-changing economic issues, and to make rapid financial support possible for new industrial strategies, the Council for Policy Finance Support will play a key role,” said Vice Chairman Kim So young of the Financial Supervisory Commission.


    [Provided by Yonhap News]

    Strong resolution to overcome the export crisis- KITA holds 2023 general meeting
    US and EU pursue trade agreement for battery minerals
Family Site