Korea's National Growth Fund: A Complete Guide to the 150 Trillion Won Initiative, Investment Areas, and Public Participation
A comprehensive overview of the Korean government's 150 trillion won National Growth Fund — its purpose, investment sectors, tax benefits, and how ordinary citizens can participate.
What Is the National Growth Fund?
Officially launched in December 2025, the National Growth Fund is a massive policy fund created by the Korean government to foster advanced strategic industries such as AI, semiconductors, and biotechnology. With a total size of 150 trillion won, it is managed by the Korea Development Bank (KDB) and will be deployed over five years from 2026 to 2030.
This is not a simple government subsidy. It combines 75 trillion won from government fiscal sources + 75 trillion won from private and financial sector sources, and the key feature is that ordinary citizens can participate directly through public offering funds.
Fund Scale and Structure
| Category | Amount |
|---|---|
| Advanced Strategic Industry Fund (government fiscal) | 75 trillion won |
| Private, citizen, and financial sector capital | 75 trillion won |
| Total | 150 trillion won |
In 2026 alone, the plan is to invest over 30 trillion won in a concentrated push.
Where Does It Invest? — 2026 Sector Allocation
| Investment Sector | 2026 Investment |
|---|---|
| AI (Artificial Intelligence) | 6 trillion won |
| Semiconductors | 4.2 trillion won |
| Regional growth support | Over 12 trillion won (40%+ of total) |
| Bio & Vaccines | 2.3 trillion won |
| Secondary batteries | 1.6 trillion won |
Investment targets span all 10 advanced strategic industries:
AI, Semiconductors, Bio & Vaccines, Robotics, Hydrogen, Secondary Batteries, Displays, Future Mobility, Defense, Content & Gaming
How Does It Invest? — 4 Methods
| Method | 5-Year Scale | Description |
|---|---|---|
| Direct equity investment | 15 trillion won | Direct equity stakes in companies |
| Indirect equity investment | 35 trillion won | Blind and project funds |
| Infrastructure investment & lending | 50 trillion won | Power grids, data centers, water facilities, etc. |
| Ultra-low interest loans | 50 trillion won | 2-3% annual rate for facility investment & R&D |
First Investment: Sinan-Ui Offshore Wind
The Sinan-Ui Offshore Wind Power Project was selected as the first mega-project for 2026. KDB plans to approve investments in all seven mega-projects during the first half of the year.
Ordinary Citizens Can Invest Too — Public Participation Funds
The most attention-grabbing aspect is the public offering fund that ordinary citizens can directly participate in.
- Expected launch: June-July 2026
- Scale: 720 billion won
- Key feature: The government invests up to 20% of fund assets as subordinated capital — absorbing losses before private investors
Tax Benefits (Legislation in Progress)
| Item | Benefit |
|---|---|
| Income deduction (up to 30 million won) | 40% deduction on investment |
| Income deduction (30-50 million won) | 20% deduction on investment |
| Income deduction (50-70 million won) | 10% deduction on investment |
| Dividend income tax | Standard 15.4% reduced to 9% separate taxation |
Example: Investing 30 million won could yield up to 12 million won in income deductions.
Expected Impact
- Create up to 125 trillion won in economic value-added
- Support venture and startup scale-ups
- Promote balanced regional growth (over 40% of total investment allocated to regions)
- Shift from collateral-based finance to technology and future-value-based "productive finance"
- Annual support of over 10 trillion won for SMEs and mid-sized companies
Management Structure — Who Oversees It?
- Lead institution: Korea Development Bank (KDB)
- Supervisory bodies: Financial Services Commission, Ministry of Economy and Finance
- Decision-making: Two-stage review through Investment Review Committee + Fund Management Review Council
- Asset manager qualifications: Asset management companies with over 1 trillion won in managed assets (public solicitation began January 2026)
Summary
| Item | Details |
|---|---|
| Launch | December 2025 |
| Total scale | 150 trillion won (government 75T + private 75T) |
| Operating period | 2026-2030 (5 years) |
| 2026 deployment | Over 30 trillion won |
| Lead institution | Korea Development Bank (KDB) |
| Public participation | Public offering expected June-July 2026 |
| Maximum benefit | 40% income deduction + 9% separate taxation |
The National Growth Fund is significant not just as a government support measure, but as a structure that allows citizens to directly invest in Korea's advanced industry growth and share in the returns. As legislation on tax benefits is being discussed ahead of the public fund launch (June-July 2026), it is advisable to check official announcements from the Financial Services Commission for specific details.
References:
- Financial Services Commission official press releases
- Korea Development Bank (KDB) announcements
- Domestic media reports from Korea Economic Daily, MBC News, and others
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