How is S. Korea Investing in AI and Semiconductors?
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Synopsis
On December 19, 2023, South Korea's newly initiated mega Public Growth Fund aims to bolster the AI, semiconductor, and battery sectors. This strategic investment, worth approximately US$101.5 billion, represents a crucial step towards enhancing the nation’s technological capabilities and meeting growing energy demands.
Key Takeaways
- Investment Focus: Major sectors include AI, semiconductors, and batteries.
- Fund Size: The Public Growth Fund is valued at 150 trillion won.
- Nuclear Fusion Timeline: Tests are planned to begin by 2030.
- Regional Development: 40% of the fund will target regional growth initiatives.
- AI Adoption: The fund aims to accelerate AI integration across various industries.
Seoul, Dec 19 (NationPress) The recently initiated mega Public Growth Fund is set to channel its resources into bolstering the artificial intelligence (AI), semiconductor, and battery industries, as stated by the head of the national financial authority on Friday.
Lee Eog-weon, the chairman of the Financial Services Commission (FSC), announced that the FSC has identified seven projects earmarked for the initial funding from the colossal 150 trillion-won (approximately US$101.5 billion) fund during a policy briefing with President Lee Jae Myung, according to Yonhap news agency.
The selected projects encompass the establishment of advanced facilities for AI chip production, large clusters of graphic processing units (GPUs) utilizing the recently acquired units from Nvidia, a national center for AI computing, and materials for secondary batteries.
Last week, the substantial fund, one of the pivotal economic commitments of the Lee administration, commenced its operations with an emphasis on accelerating the adoption of AI across various sectors and directing investments into critical industries such as secondary batteries and biotechnology over the upcoming five years.
Lee indicated that 40 percent of the fund would be allocated for investment projects aimed at fostering regional development.
The FSC has revealed plans to invest over 30 trillion won next year, with initial allocations including 6 trillion won for the AI domain, 4.2 trillion won for the semiconductor sector, and 3.1 trillion won dedicated to future mobility.
In a related development, South Korea aims to kick off experiments in nuclear fusion power generation by 2030, a significant advancement nearly 20 years ahead of its initial timeline, as announced by the government on Friday, in response to the rising energy demands linked to the AI surge.
The National Fusion Energy Committee unveiled a strategic plan outlining its research trajectory in this field, alongside objectives to secure eight essential technologies, as reported by the Ministry of Science and ICT.
Nuclear fusion is viewed as a promising solution for generating cleaner and safer energy, as it is devoid of carbon emissions and produces significantly less radioactive waste compared to traditional nuclear fission.
Point of View
This initiative by South Korea marks a significant advancement in its economic strategy. By focusing on key industries such as AI and semiconductors, the nation is positioning itself as a leader in technological innovation, which is essential in today’s rapidly evolving global market. The investment not only reflects a commitment to regional growth but also aligns with global trends in energy and technology.
NationPress
21/12/2025
Frequently Asked Questions
What sectors will the Public Growth Fund support?
The Public Growth Fund will primarily support the artificial intelligence, semiconductor, and battery sectors.
How much is the Public Growth Fund worth?
The fund is valued at approximately 150 trillion won, which is around US$101.5 billion.
When does South Korea plan to begin nuclear fusion tests?
South Korea aims to start nuclear fusion power generation tests by 2030.
What is the significance of nuclear fusion power?
Nuclear fusion power is seen as a cleaner and safer energy alternative, producing no carbon emissions and less radioactive waste.
How will the fund contribute to regional growth?
40 percent of the fund will be allocated to investment projects that promote regional development.
