Financial Services Commission and Local Governments Hold 'National Growth Fund' Roundtable

Over 60 Trillion Won from the National Growth Fund to Be Invested in Non-Metropolitan Regions Over Five Years
"On-Site National Growth Fund Business Briefing" to Be Held
Policy Financial Institutions to Supply 240 Trillion Won in Corporate Financing

Policy financial institutions such as Korea Development Bank and Industrial Bank of Korea will provide 240 trillion won in corporate financing this year. Of this amount, more than 41.7% is planned to be allocated to regions outside the Seoul metropolitan area.

On the 11th, at the Korea Development Bank in Yeouido, Seoul, key attendees including Eunok Lee, Chairman of the Financial Services Commission, Jungjin Seo, Chairman of Celltrion, and Hyunju Park, Chairman of Mirae Asset, performed a commemorative ceremony for the launch event of the National Growth Fund Strategy Committee Meeting. 2025.12.11 Photo by Dongju Yoon

The National Growth Fund Task Force of the Financial Services Commission announced on February 2 that it held a "National Growth Fund Roundtable for Local Governments" together with local governments and policy financial institutions, where these plans were discussed.

The roundtable included presentations on the objectives and operational plans of the National Growth Fund, guidance on support cases and application procedures, an introduction to preferential policy financial programs for local areas, and a Q&A session. Each local government proposed investment ideas tailored to the characteristics of their regional industries and shared the challenges they face during the business planning stage.

Son Youngchae, Head of the National Growth Fund Task Force, emphasized, "While regional development in the past relied mainly on government budgets, it is now time to shift to a paradigm of a self-sustaining economic structure, where private capital circulates locally through the National Growth Fund as a public-private partnership platform." He added, "Since each region possesses unique growth drivers, if creative projects suited to local characteristics are planned and proposed, policy financial institutions and private financial companies can serve as strategic partners by leveraging their expertise to design optimal financial structures."

During the roundtable, preferential financial products available to local companies from each institution were also introduced. Policy financial institutions, separate from the National Growth Fund, will supply 240 trillion won in corporate financing this year, and in line with the goal of expanding policy finance to local areas, more than 41.7% of this will be allocated to regions outside the metropolitan area. As a result, policy financial funds supplied to non-metropolitan regions are expected to exceed 106 trillion won this year.

The Financial Services Commission stated that it will actively incorporate the feedback gathered at the event into the future operation of the National Growth Fund, and will also strengthen the link between policy finance and regional industrial strategies by expanding local government participation in the quarterly Policy Finance Support Council meetings.

In addition, on February 11-12, Eunok Lee, Chairman of the Financial Services Commission, will visit local advanced industry sites to hold an "On-Site National Growth Fund Business Briefing," providing tailored support information needed by advanced industry companies, reflecting the voices of local businesses.

The National Growth Fund was launched in December last year with a total size of 150 trillion won to serve as a "priming fund" to share the risks of large-scale infrastructure investments and high-risk advanced industry investments that are difficult for the private sector to undertake alone.

With the understanding that cooperation with local governments is essential, the National Growth Fund set a goal to effectively allocate more than 60 trillion won, or 40% of the total fund, to non-metropolitan regions.

According to the Financial Services Commission, a total of 91 projects worth approximately 70 trillion won have so far been introduced in non-metropolitan regions. In particular, local governments have actively proposed advanced industry development projects linked to the so-called "Five Mega-Regions and Three Special Zones Strategy."

The "Five Mega-Regions and Three Special Zones Strategy" is a regional balanced development initiative being promoted by the Lee Jaemyung administration. It aims to reorganize the country into five mega-regions (the Seoul metropolitan area, Southeast, Honam, Daegu-Gyeongbuk, and Central regions) and three special self-governing provinces (Jeju, Gangwon, and Jeonbuk Special Self-Governing Provinces), focusing on strengthening the industrial, administrative, and fiscal capacities of each region.

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