Seoul: The newly launched mega-sized Public Growth Fund will initially be directed towards supporting the artificial intelligence (AI), semiconductor, and battery sectors, as announced by the chief of the state financial regulator. Lee Eog-weon, chairman of the Financial Services Commission (FSC), revealed that the FSC has identified seven projects to receive funding from the 150 trillion-won (US$101.5 billion) fund during a policy briefing to President Lee Jae Myung.

According to Yonhap News Agency, the selected projects encompass the development of advanced AI chip production facilities, large-scale graphic processing unit (GPU) clusters utilizing recently acquired GPUs from Nvidia, a national AI computing center, and materials for secondary batteries. This initiative is a key economic pledge of the Lee administration, aimed at accelerating AI adoption and directing resources towards pivotal industries such as secondary batteries and biotechnology over the forthcoming five years.

Lee further stated that 40 percent of the fund's resources will be allocated to investment projects aimed at fostering regional growth. The FSC has committed over 30 trillion won for investment in the coming year, with initial allocations including 6 trillion won for the AI sector, 4.2 trillion won for the semiconductor segment, and 3.1 trillion won for future mobility initiatives.

To invigorate the domestic stock market, the FSC plans to attract more institutional investment in the secondary KOSDAQ market, which is currently dominated by retail investors. This will involve overhauling the review system for the listing and delisting of companies on the tech-heavy bourse to facilitate the entry of more firms while enforcing stringent delisting rules.

Additionally, the FSC aims to introduce tax incentives for funds dedicated to supporting corporate growth initiatives, such as public growth funds and KOSDAQ venture funds, to encourage a sustainable investment cycle.