FSC to offer KRW 2 trillion in loans at 3%‑range annual interest Ulsan all-solid-state battery plant also selected
Samsung Electronics Seocho Building in Seocho-gu, Seoul. 2026.1.29 ⓒ News1
The government is reported on the 24th to have decided to select Samsung Electronics’ Pyeongtaek Plant 5 (P5) as the first recipient of an “ultra-low interest loan” under the National Growth Fund. To support the artificial intelligence (AI) semiconductor industry, designated as a national core strategic sector, the government is expected to extend a total of KRW 2 trillion in loans to Samsung Electronics’ P5 at an annual interest rate in the 3% range.
The Financial Services Commission (FSC) recently selected Samsung Electronics’ Pyeongtaek P5 and the Ulsan all-solid-state battery materials plant (Isu Specialty Chemicals) as targets for support from the National Growth Fund through its Investment Deliberation Committee. The FSC plans to convene the National Growth Fund Fund Management Deliberation Committee on the 26th to review the two support proposals and finalize the scale and other details of the assistance. Following the Shinan-Uui offshore wind power generation project (infrastructure investment and financing), which was recently chosen as the first investment destination of the National Growth Fund, P5 and the Ulsan plant will effectively become the second and third investment destinations.
The ultra-low interest loan to be supplied to Samsung Electronics’ Pyeongtaek P5 will be KRW 2 trillion, with the interest rate expected to be in the 3% annual range, similar to Treasury bond yields. Separately, the five major commercial banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) have also decided to provide a total of KRW 500 billion in low-interest loans as construction funds for P5.
Samsung Electronics plans to complete P5 by 2028 and expand production lines for next-generation memory semiconductors such as high-bandwidth memory (HBM). The industry estimates that total investment for the construction of P5 will reach KRW 60 trillion.
The government plans to establish the National Growth Fund in a total amount of KRW 150 trillion over the next five years and, within that, to provide KRW 50 trillion in ultra-low interest loans to support advanced strategic industries. Major advanced economies, including the United States, Japan, and Europe, are moving to expand subsidies to foster their domestic semiconductor industries.
Jeon Ju-young
AI-translated with ChatGPT. Provided as is; original Korean text prevails.
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