The Financial Services Commission (FSC) announced that it will invest more than KRW 60 trillion in non-metropolitan regions over the next five years through the National Growth Fund and provide over KRW 100 trillion in regionally preferential financing annually through policy finance institutions.

The FSC National Growth Fund Task Force held a “National Growth Fund Meeting for Local Governments Nationwide” on the 2nd at Front1 in Mapo-gu, Seoul, together with local governments and policy finance institutions. The meeting was organized to discuss strategies for identifying region-focused advanced strategic industry projects and to brief local governments on the National Growth Fund’s operation methods and application procedures. The National Growth Fund, a KRW 150 trillion fund jointly created by the government, the private sector, and industry to invest in advanced strategic industries, is a key national agenda of the Lee Jae-myung administration.

Local governments have actively submitted project proposals to the National Growth Fund Task Force. As of the 30th of last month, 91 projects worth approximately KRW 70 trillion had been submitted from non-metropolitan regions. Busan proposed a project to establish an AI Transformation (AX) and robotics convergence startup town to the task force. North Gyeongsang Province submitted a project to expand silicon wafer production, while South Jeolla Province submitted plans to build a national AI computing center and a core parts production base for future vehicles. Going forward, the FSC and the Korea Development Bank secretariat will determine support targets after review by the Investment Deliberation Committee and the Fund Management Deliberation Committee, among others.

Separately from the National Growth Fund, the FSC plans to supply KRW 240 trillion in corporate finance funds this year through policy finance institutions under its policy to promote regionally preferential financing. Of this, KRW 106 trillion, or at least 41.7%, will be allocated to non-metropolitan regions.

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