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Increase KRW 10 tln of Policy Finance for Five Major Core, Strategic
Industries…
Total Support of KRW 91 tln
Increase KRW 10 tln of Policy
Finance for Five Major Core, Strategic Industries…
Total Support of KRW 91 tln
Additional
Supply of KRW 10 tln for Seven Industries
including
Air & Space, Carbon Materials, and Defense
Plan
to Form Innovative Growth Fund of KRW 3 tln this Year…
Council
for Policy Finance Support Held
This
year, the government provides additional support of KRW 10 tln of policy
finance funds to seven industries, which include the defense, agricultural/food
and new industries. On February 22, at the Korea Federation of Banks building, the
Financial Supervisory Commission held the 2nd meeting of the Council for Policy
Finance Support, chaired by Vice Chairman Kim So young of the Financial
Supervisory Commission, and revealed that a discussion had been conducted
regarding additional supplementation plans for 2023 fund supply to policy
financial institutions, raising the target supply amount for the five major
core, strategic areas to KRW 91 tln.
The
Council for Policy Finance Support is a council formed among policy financial
institutions and industry-related ministries to supply policy funds more
effectively to areas that need them. Previously, in December of last year, the
government held the 1st meeting of the Council for Policy Finance
Support, reflecting the government’s
Strategy of New Growth 4.0 and industrial policies of each ministry, to select
the five major core strategic tasks. It announced that it would provide an
intensive supply of a total of KRW 81 tln to related industry areas.
The
added industrial areas include air & space (KRW 300 bln), carbon materials (KRW 1.3 tln), quantum
technology (KRW 40 bln), defense industry (KRW 3.1 tln), food/agricultural and
new industries (KRW 2.2 tln), carbon neutrality (plastic) (KRW 2.1 tln), and carbon neutrality (cement)
(KRW 1 tln). The Financial Supervisory Commission explained that “We reflected
the recent industrial issues and tasks, which include improving export
vitality, strategic overseas entry and strategy for new growth 4.0. The
organizations that participated in the meeting also discussed a plan to form an
innovative growth fund for 2023 worth KRW 3 trillion.
KRW
1.5 tln shall be used to form an innovative industry fund to promote new
industries and create growth engines. Another KRW 1.5 tln will be used to form
a growth support fund to promote global unicorn ventures. The innovative growth
fund, to which a total of KRW 15 tln will be provided during a period of five
years, will concentrate on large scale investment in companies in the later
stages of growth that experience poor market formation, in order to maximize
the effect of propping up the market.
In
addition, an agreement was made to maintain the share of financial investment
to about 10%, and expand incentives for private investors for the purposes of
promoting the efficiency of financial means. The Korea Development Bank plans to select two
companies to manage the mother fund for innovative growth by early April, and
about fifteen companies to manage the baby fund by early June. On the other
hand, during the meeting on this day, discussions underwent on the plan to
revise the common criteria for innovative growth. The core categories with high
industrial creation effect and growth potential would be revised from the
previous 284 items to 296.
Companies related to items
that would be provided with support pursuant to the new common criteria can
apply for the use of financial products exclusive to the innovative growth area
from relevant financial institutions from the 1st of next month. “In
order to respond to the ever-changing economic issues, and to make rapid
financial support possible for new industrial strategies, the Council
for Policy Finance Support will play a key role,” said Vice Chairman Kim So young of the
Financial Supervisory Commission.
[Provided by Yonhap News]
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