An industrial growth fund was launched to support the artificial intelligence (AI) transition of the manufacturing sector.
The Ministry of Trade, Industry and Energy on the 18th held the "Industrial Growth Fund Launch Ceremony and Industrial Finance Strategy Meeting" at Korea Growth Investment Corp. in Yeouido, Seoul, presided over by Trade Minister Kim Jung-kwan, and announced operational plans for the fund. The Industrial Growth Fund, the new name for the former Industrial Technology Innovation Fund, is a policy-driven private fund that attracts private capital based on anchor investments from R&D-dedicated banks that hold and manage the ministry's research and development (R&D) funds.
Hana Bank, selected as the third-term (2026–2028) R&D-dedicated bank, will contribute 620 billion won, while the Industrial Bank of Korea will contribute 495 billion won, for a combined commitment of 1.115 trillion won. This is the largest amount in the history of the Industrial Growth Fund. Beyond bank capital, the government plans to scale up the overall fund size by securing additional joint investments from end-user companies and private matching funds.
The fund's first sub-fund will be the "Manufacturing AI Transformation (M.AX)" innovation fund. It will invest in companies pursuing the convergence of manufacturing and AI in areas such as humanoids, AI factories, future mobility, and autonomous ships. Based on a 100 billion won anchor investment from the R&D-dedicated bank, the fund aims to expand to as much as 500 billion won through private matching. The government plans to issue a public call for fund managers next month. The ministry will subsequently establish a regional industrial vitality fund covering the "5 Hubs and 3 Special Zones" plan, as well as sector-specific ecosystem funds.
"At a time when real economy conditions are challenging, I hope expanding the supply of industrial finance will serve as a turning point for overcoming the crisis and bring closer the future of Korea we aspire to — including a genuine convergence of AI and manufacturing and shared growth with regional economies," Kim said.
