S.K.’s FSC raises KRW73.8t in policy funds for venture capital in FIs
This exceeded the initial supply plan of 66.7% by August and achieved 80.4% of the annual target.
South Korea’s Financial Services Commission (FSC) reported policy financial institutions have already supplied KRW73.8t in policy funds support for its strategic sectors, surpassing the initial supply plan of 66.7% by August and achieving 80.4% of the annual target.
Acknowledging concerns about a potential economic slowdown stemming from China and ongoing high interest rates and oil prices, FSC Vice Chairman Kim So-young emphasised the need for effective policy fund supply to prevent funding shortages.
This consultative body, established last year, aims to align government industrial strategies with policy fund allocation. In 2023, authorities committed to providing KRW91t in policy funds support across five key strategic areas.
To ensure a continuous supply of policy finance support in various industries, the authorities discussed closer alignment between industrial policy programs overseen by relevant ministries and budget planning during its 4th consultative body meeting on policy finance support today.
Vice Chairman Kim highlighted the importance of linking policy finance supply with fiscal planning to support various industrial sectors consistently.
Additionally, discussions covered the overhaul of the "Growth Ladder Fund," originally dedicated to SMEs and venture businesses with a 10-year investment period ending in August.
The new "Growth Ladder Fund" will prioritise investments in underfunded areas like deep tech and climate sectors where private sector investment is insufficient.
Each year, KRW200b from the initial "Growth Ladder Fund" investment will be reinvested to create over KRW1t in funds for a secondary market and strategic investments.