Chairman Lee Eogweon: "Advanced Strategic Industry Fund to Invest Faster in AI and Semiconductor Sectors"

First Monthly Press Briefing Since Inauguration
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First Investment to Target AI Sector... Actively Supporting Global Competition
Directly Overseeing Inclusive Finance
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Lee Eog-weon, Chairman of the Financial Services Commission, is speaking about recent issues at a press briefing with reporters at the Government Seoul Office in Jongno-gu, Seoul on November 12, 2025. Photo by Jo Yongjun

The Financial Services Commission announced that artificial intelligence (AI) and semiconductors are strong candidates to become the first investment targets of the Advanced Strategic Industry Fund, which is set to be officially launched next month. With funding from private sources such as financial holding companies now secured, the Commission has stated its intention to invest in sectors that can drive the growth of the Korean economy. Through this initiative, the Commission plans to continue promoting 'productive finance' by shifting the focus of financial resources from real estate and collateral-based lending to growth industries and the real economy.

On November 12, Lee Eog-weon, Chairman of the Financial Services Commission, held his first monthly press briefing at the Government Seoul Office, stating, "The key for the Advanced Strategic Industry Fund is how to connect investments to our future," and added, "The first investment will likely be made more quickly in the fields of artificial intelligence (AI) and semiconductors."

The Advanced Strategic Industry Fund is a large-scale project symbolizing the 'productive finance' policy direction of the Lee Jaemyung administration. It will be established within the Korea Development Bank with a maximum size of 50 trillion won over the next five years to respond to the global competition for technological supremacy. The fund will provide broad support to leading advanced industries such as AI, semiconductors, defense, and robotics, covering companies from large corporations to mid-sized and small enterprises.

When asked about the investment criteria and the proportion of investments between large and small companies, Chairman Lee explained, "There is no separate ratio for investments in large versus small companies. There are nine investment sectors, including AI, and the support methods are divided into indirect investments, equity investments, ultra-low interest loans, and infrastructure investments."

Chairman Lee pointed out, "My assessment is that the Korean economy continues to be weighed down by the structural challenges of low growth and polarization," and emphasized, "The way to overcome this is for industry and the real economy to break through, and ultimately, finance must provide the support for this."

He continued, "The first step is to shift to productive finance that channels funds toward the future. Ultimately, the issue is how to redirect the flow of funds from unproductive areas such as real estate to innovative and venture sectors that are productive."

Lee Eokwon, Chairman of the Financial Services Commission, is speaking about recent issues at a press briefing with reporters at the Government Seoul Office in Jongno-gu, Seoul on the 12th. 2025.11.12 Photo by Jo Yongjun

Chairman Lee also stressed the importance of speed in implementing productive finance. To this end, the Financial Services Commission announced plans to ease capital regulations for financial holding companies.

He stated, "After my inauguration, I discussed productive finance with the heads of financial holding companies, and ultimately, easing capital regulations is what gives finance the power to support the real economy." He explained, "For policy funds, the risk weight has been eased to 100%, for equity investments the basic rate is 250%, and in exceptional cases, 400%. As financial companies draw up their business plans, the amount to be invested in productive finance will be determined in conjunction with these changes."

Chairman Lee also announced that, for the remainder of this year, he will focus on key legislative tasks and securing the necessary budget. He said, "Our main legislative priorities going forward are amendments to the Credit Information Act, the Act on Financial Services for the Underprivileged, and the Capital Markets Act." He emphasized, "The Act on Financial Services for the Underprivileged involves establishing a stability fund to ensure the stable supply of policy-based financial products for the underprivileged, and we will work to ensure these products can be supplied more stably and flexibly."

He continued, "As for productive finance, the National Growth Fund (Advanced Strategic Industry Fund) will be launched on December 10. We will thoroughly prepare by gathering opinions in advance on the fund's governance and projects, so that it can be operated successfully and deliver immediate results upon its launch."

In particular, at the third meeting on the Great Transformation of Productive Finance, scheduled for late November to early December, Chairman Lee said the focus will be on capital market issues. He stated, "As early as next week, we plan to announce measures such as expanding the number of companies required to provide English-language disclosures to improve capital market accessibility and shareholder rights, and strengthening disclosure of executive compensation voting results at shareholders' meetings."

Lee Eokwon, Chairman of the Financial Services Commission, is speaking about recent issues at a press briefing with reporters at the Government Seoul Office in Jongno-gu, Seoul on November 12, 2025. Photo by Jo Yongjun

In addition, the Commission plans to accelerate the supply of venture capital, which is a major pillar of productive finance. As part of this, the Commission intends to designate comprehensive investment account (IMA) operators for comprehensive financial investment business entities (investment companies) as early as this month. Previously, investment companies operating IMAs and issuance notes were required to supply 25% of their raised funds as venture capital, and this is expected to play a significant role in productive finance.

Chairman Lee stated, "The designation of IMAs and issuance notes for investment companies will proceed as soon as the review is completed. If the review moves quickly, we expect to see the first designation cases this month."

Furthermore, the Commission is reviewing ways to expand tax benefits for long-term investors. President Lee Jaemyung presided over a cabinet meeting the previous day and instructed Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol to "develop detailed measures to provide tax benefits to general investors who make long-term investments."

Chairman Lee commented, "Expanding long-term investment can establish a stable foundation for the development of the capital market, and from the investor's perspective, it also allows for more stable returns, making it a very important task. Yesterday's discussion was about identifying key priorities for next year's economic policy direction, so it is something that requires continued, cross-ministerial attention."

The Commission is also strengthening measures to protect financial consumers. Chairman Lee said, "We are currently preparing comprehensive measures to eradicate illegal private lending and illegal debt collection practices," and reiterated that illegal lending contracts are invalid.

He stated, "Anti-social lending contracts with annual interest rates exceeding 60% are completely invalid, both for principal and interest. Although we are continuously promoting this, many people are still unaware, so we will further strengthen the support system to ensure that the revised Lending Business Act is properly enforced in the field."

He added, "Taking into account the unequal relationship between creditors and debtors, we will also review measures to improve the management of individual delinquent loans to provide stronger protection for debtors and delinquent borrowers."

This content was produced with the assistance of AI translation services.