South Korea's Strategic Move in Global Tech Race

In a bold step to secure its position in the global technology arena, South Korea has unveiled a colossal 100 trillion won investment plan aimed at bolstering its advanced strategic industries, including semiconductors, artificial intelligence (AI), and batteries. This initiative comes as a response to the escalating trade tensions and technological rivalry, notably influenced by U.S. policies under President Donald Trump.

Government and Private Sector Collaboration

The government plans to establish a 50 trillion won fund at the Korea Development Bank (KDB), which will be matched by an additional 50 trillion won from commercial banks, totaling 100 trillion won. This fund is designed to support not only the semiconductor and AI sectors but also other industries critical for economic security, such as automobiles and steel. The initiative was announced during a ministerial meeting on current state affairs, emphasizing the urgency to enhance industrial competitiveness amidst a rapidly changing global trade environment.

Expanding Support Beyond Traditional Industries

In addition to the core sectors, the government has decided to extend its support to include national strategic technology sectors like vaccines, hydrogen, future mobility, and transportation means. This comprehensive approach aims to proactively address the challenges posed by the U.S.-initiated tariff policies and the shifting global trade dynamics. The government's strategy also involves diversifying support methods, including equity investments in small and medium-sized enterprises and indirect investments through funds, to ensure a robust response to the global competition in technology and trade.