Government Announces Significant Increase in Policy Finance for 2025

In a strategic move to bolster the economy, South Korea has announced a 2.9% increase in policy finance for the next year, totaling 247.5 trillion won. This initiative aims to support key sectors identified as crucial for the nation's future growth and stability.

Focus on Strategic Industries

Of the total policy finance, 136 trillion won will be concentrated in five key strategic areas, marking a significant 17.2% increase from the previous year. These areas include advanced strategic industries, future promising industries, industrial restructuring, support for SMEs and mid-sized companies, and alleviation of corporate management difficulties.

Investment in Advanced and Future Industries

The government has earmarked 37.2 trillion won for advanced strategic industries such as semiconductors, secondary batteries, future cars, bio, and artificial intelligence (AI). The AI sector, newly added to the list, is set to receive 5 trillion won, while the semiconductor industry will benefit from 8.4 trillion won in policy finance.

Support for SMEs and Corporate Restructuring

Recognizing the challenges faced by SMEs and mid-sized companies, 16.7 trillion won has been allocated to foster unicorn ventures and support these businesses. Additionally, 29.7 trillion won will be directed towards alleviating corporate management difficulties, with a focus on active business restructuring through the establishment of a dedicated M&A league.

Innovation and Growth Initiatives

To accelerate the transition from loan-centered to investment-centered policy finance, direct investment targets for the five key areas have been set at over 1 trillion won. The government also plans to introduce an AI-specialized fund and the "Innovation Premier 1000" initiative to provide customized financial and non-financial support to excellent SMEs and mid-sized companies.