Government Initiative to Strengthen High-Tech Sectors

In a significant move to bolster South Korea's high-tech industries, the Financial Services Commission (FSC) Chairman Kim Byung-hwan announced plans to establish a dedicated fund within the Korea Development Bank (KDB). This initiative aims to enhance the nation's industrial competitiveness and support sectors crucial to economic growth, such as biotechnology, electronics, and information technology.

Strategic Investments Over Loans

Chairman Kim highlighted the advantages of direct investment in Special Purpose Companies (SPCs) over traditional loans. "By investing in SPCs for factory constructions, the KDB can offer more cost-effective solutions to companies, reducing financial risks and fostering targeted support for strategic sectors," Kim explained. This approach is expected to provide a more flexible financial structure for high-tech industries, driving innovation and growth.

Revitalizing Local Real Estate Markets

In addition to industrial support, Kim addressed the need for a more dynamic local real estate market. Plans include adjusting the household debt growth rate for regional banks to balance loan growth with the current account balance. This adjustment will enable regional banks to play a pivotal role in supporting local economies through more effective lending and financial services.

Commitment to Sustainable Economic Development

The FSC's strategies reflect the South Korean government's commitment to maintaining its global economic standing and ensuring sustainable development. By focusing on high-tech industries and local real estate markets, the government aims to drive future growth and enhance the nation's industrial competitiveness on the global stage.