[Briefing] National Growth Fund to Expand to 200 Trillion Won... New 'Ultra-Long-Term Technology Investment Fund' with 10-Year Patient Capital Introduced

Financial Services Commission’s Work Briefing for the Second Half of 2026

National Growth Fund to Expand from 150 Trillion Won to 200 Trillion Won

New Ultra-Long-Term Technology Investment Fund: Over 10 Years of Equity Investment in Semicond

The government will increase the investment size of the National Growth Fund to 200 trillion won from the current 150 trillion won over the next five years and launch a “Super-Long-Term Technology Investment Fund” to provide patient capital of more than 10 years to national strategic technologies such as semiconductors and bio-industries. In addition, a new specialized public-private investment institution dedicated to managing long-term growth capital, the Korea Strategic Technology Partners (KSTP), will be established to promote the national strategic assetization of future source and core technologies. With global competition for technological hegemony expanding from technology itself to a capital war, the government aims to help advanced technology companies in need of long-term capital overcome the so-called “valley of death” and move towards commercialization, supporting the creation of technological leads in cutting-edge industries and the country's leap to becoming an industrial powerhouse.

Yonhap News Agency

The Financial Services Commission announced these measures at a joint government presidential work report meeting held on the 15th under the theme “Irreplaceable Korea through an Economic Leap Forward.”

Lee Eogwon, Chairman of the Financial Services Commission, emphasized, “As the global investment war intensifies and demand for advanced industrial investment rises, the financial sector will take the lead in securing national competitiveness in high-tech and industrial areas. Productive finance will open the path toward making Korea a super-gap industrial powerhouse.”

The Commission will first expand the annual supply of the National Growth Fund from the current 30 trillion won to 40 trillion won. As a result, the total scale for the next five years will increase from 150 trillion won to 200 trillion won. Among this, direct equity investments will also be expanded from the current 3 trillion won to more than 5 trillion won annually. Eligibility for support will be broadened from the current 12 high-tech industries to include future strategic industries such as aerospace, and long-term growth capital will be provided with a focus on three mega projects: semiconductors, Artificial Intelligence Data Centers (AIDC), and physical AI.

The core of the expanded National Growth Fund is the newly established Super-Long-Term Technology Investment Fund with a scale of 880 billion won in the indirect investment sector. This fund is designed to provide patient capital for more than 10 years to technology companies whose research and development (R&D), commercialization, and investment exit take long periods, such as next-generation semiconductors and new bio-drug development. It aims to ensure that companies with technological capabilities but facing financial challenges during the commercialization process can continue to grow stably without being stopped by funding issues.

In consideration of the long-term investment characteristic, over 75% of the fund's resources will be contributed by the government and policy funds, centered on the Advanced Strategic Industry Fund of the National Growth Fund. In addition, the government will use fiscal resources to provide a 40% subordinate tranche to private sector contributions, reducing loss risks for private investors and incentivizing long-term investment. Target companies will include those rated in the top five grades on the Technology Credit Bureau (TCB), with equity investments made in the form of common stock. Private sector fundraising and investment are scheduled to begin by year-end.

KSTP will professionally manage the long-term growth capital, including the Super-Long-Term Technology Investment Fund. Jointly established by Korea Development Bank, Korea Growth Investment Corp., and private sector financial groups including the top five banking groups, the government will also provide incentives to participating institutions. KSTP will play the role of supporting the national strategic assetization of future source and core technologies by supplying large-scale, long-term funding to areas such as semiconductors, quantum computing, bio, energy, and key minerals. The goal is to manage up to 10 trillion won over five years, allocating 1 trillion to 2 trillion won annually.

In addition, the Commission will launch a “Startup Build-Up” guarantee-backed loan program to support early-stage companies in raising capital. Startups within three years of establishment will be eligible to receive up to 100 million won in the first year, with the limit expanded to 200 million won the following year if their growth potential is confirmed. Companies receiving these loans will benefit from preferential interest rates and guarantee premium rates, and repayment of the principal can be deferred for up to three years after program completion. This measure aims to alleviate the capital-raising challenges faced by early-stage firms due to lack of credit or track record, with Korea Credit Guarantee Fund and Industrial Bank of Korea scheduled to launch related products in August.

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