Korea's National Growth Fund will invest 250 billion won ($178 million) in artificial intelligence semiconductor startup Rebellions as part of its initiative to nurture a domestic rival to Nvidia.
Separately, Meritz Financial Group announced plans to commit 6 trillion won to the National Growth Fund and related programs over the next five years, accelerating the financial sector's shift toward productive financing.
According to financial industry sources on the 10th, the government is reviewing plans to invest 250 billion won from the National Growth Fund in Rebellions' ongoing 600 billion won funding round. Combined with an additional 50 billion won from Korea Development Bank, total policy financing will reach 300 billion won. The remaining 300 billion won will come from private capital, including a fund jointly established by Mirae Asset Capital and Mirae Asset Venture Investment.
The National Growth Fund is a 150 trillion won comprehensive financial support program designed to broadly support advanced strategic industries and their ecosystems. The "K-Nvidia Development" initiative, one of seven mega projects under the fund, involves direct investments exceeding 1 trillion won in innovative companies to support domestic AI chip design and manufacturing.
"We are reviewing investment in Rebellions as part of the K-Nvidia development program," a Korea Development Bank official said.
Founded in 2020, Rebellions specializes in designing AI semiconductors based on neural processing units (NPUs). The company achieved unicorn status—a valuation exceeding 1 trillion won—after supplying its first-generation NPU product ATOM to SK Telecom, KT Cloud, and LG Electronics.
Authorities are preparing to hold a National Growth Fund briefing for five fabless startups on the 17th. Participants are expected to include Rebellions, FuriosaAI, DeepX, and HyperAccel.
Financial authorities aim to approve all seven mega projects in the first half of this year. Projects approved so far in 2024 include the Sinan-Ui offshore wind power project (3.4 trillion won), Samsung Electronics' Pyeongtaek Line 5 AI semiconductor cluster (2.5 trillion won), and ISU Specialty Chemical's all-solid-state battery materials plant (100 billion won).
The Financial Services Commission held its third Productive Finance Council meeting on the same day to review individual financial institutions' progress and announce future plans.
Shinhan Financial Group invested 3.16 trillion won in productive financing by the end of last month, exceeding 18.6% of its annual target. Following the government's regional development policy, the group launched a Jeonbuk financial hub and will contribute to a 100 billion won venture fund-of-funds to support youth, regional economies, and startups.
Hana Financial Group also plans to establish a 500 billion won energy and infrastructure fund jointly across its group companies this month.
"The most important thing is for financial institutions to systematize and institutionalize productive financing themselves so it doesn't become 'productive financing in name only,'" said Kwon Dae-young, Vice Chairman of the Financial Services Commission. "As results and returns will serve as the market's report card, I urge you to ensure this leads to substantive change."
