South Korea's Ministry of Science and ICT has launched a Science and Technology Innovation Fund targeting companies in 12 national strategic technology sectors and technology commercialization. The goal is to raise a total of 1 trillion won through private-sector leadership without government equity investment.
The ministry held an inauguration ceremony and IR event for the first Science and Technology Innovation Fund at TP Tower in Yeouido, Seoul, on January 24. Key attendees included Deputy Prime Minister and Science Minister Bae Kyung-hoon, heads of designated banks, and representatives from parent fund and sub-fund management companies, who shared future fund operation plans.
The Science and Technology Innovation Fund operates through a structure where designated banks (Shinhan Bank, IBK Industrial Bank, and Woori Bank) managing the national R&D fund system (Integrated Ezbaro) will create a 494 billion won parent fund over four years, contributing approximately 120 billion won annually. This parent fund will then attract private investment to form and operate multiple sub-funds each year.
In February last year, the ministry signed an MOU with the designated banks, the National Research Foundation of Korea, and fund manager Shinhan Asset Management. Following market trend analysis, private and policy demand assessment, and consultations with related ministries and contributing banks, five of the 12 strategic technology areas were designated as priority investment sectors for the first fund.
Public offerings for fund managers in each priority sector, completed by the end of last year, resulted in the following allocations: semiconductors and displays (401 billion won), artificial intelligence (144 billion won), advanced mobility (49 billion won), advanced bio (107.6 billion won), and quantum technology (61.6 billion won). Sub-funds totaling 763.2 billion won were formed across the five sectors, approximately three times the original target of 255.9 billion won.
Each sub-fund will invest 30-40% or more of the target amount in companies within priority sectors (15-20% or more for excess amounts). At least 60% must be invested in companies across the 12 national strategic technology areas, including priority sectors (40% or more for excess amounts).
"I hope the Science and Technology Innovation Fund will become a disruptive core capability that will lead our nation's economy in 10 years," Deputy Prime Minister Bae said at the ceremony. "I ask that you focus your capabilities so that entrepreneurs with bold pioneering spirit can receive timely support. We will continue efforts to incentivize private investment and foster a supportive environment for companies with excellent technology to grow."