Seoul: The South Korean government has announced plans to invest over 30 trillion won (US$20.4 billion) in the upcoming year to bolster artificial intelligence (AI) and other advanced sectors. This initiative will be funded by the newly established mega-sized fund, as confirmed by officials on Tuesday.

According to Yonhap News Agency, the 150 trillion-won Public Growth Fund, a significant economic pledge by President Lee Jae Myung, was launched last week. It aims to accelerate AI adoption across various sectors and channel resources into critical industries such as semiconductors, secondary batteries, and biotechnology over the next five years.

The Financial Services Commission (FSC) has revealed that the initial investment next year will exceed 30 trillion won. This includes allocations of 6 trillion won for the AI sector, 4.2 trillion won for semiconductors, and 3.1 trillion won for future mobility. Approximately 3 trillion won will be directly invested, with an additional 10 trillion won earmarked for infrastructure. Furthermore, 10 trillion won will be available at low-interest rates, as stated by the financial regulator.

The fund is structured with a 75 trillion-won government-guaranteed component for strategic industries and 75 trillion won in private investment. It encompasses direct and indirect financing, government-backed bonds, and low-interest loan programs. The FSC also noted that the government has received around 100 proposals, totaling 153 trillion won, from local governments, business circles, and other entities for potential investment in their projects.