Seoul: The second round of investment by the mega-sized Public Growth Fund will be mainly focused on the bio, display, and mobility sectors, the financial regulator announced Tuesday.
According to Yonhap News Agency, the Lee Jae Myung government launched the 150 trillion-won (US$101 billion) fund late last year to support seven projects, including artificial intelligence (AI) adoption, secondary batteries, and biotechnology, over the next five years. Thus far, the fund has decided to allocate approximately 6.6 trillion won into four projects, which include the construction of an offshore wind farm and an AI chip production facility.
The investment review committee of the fund has selected the next focal points for investment-bio, display, and mobility-and will deliberate on funding strategies for these sectors, as reported by the Financial Services Commission (FSC). The regulator indicated that around 10 trillion won will be dedicated to these areas under the second investment batch. "The projects to be funded by the second batch of investment from the Public Growth Fund will have a significant ripple effect on the overall industrial sector, while also contributing to invigorating regional economies," stated FSC chairman Lee Eog-weon during a review committee meeting.
The second phase of the fund's investment projects will be supported by a 35 trillion-won private-government fund and a direct investment fund valued at 15 trillion won. Previously, the FSC announced that over 30 trillion won would be invested this year, including initial investments of 6 trillion won for the AI sector, 4.2 trillion won for the semiconductor segment, and 3.1 trillion won in future mobility.