A fund dedicated to supporting projects aimed at promoting South Korea's industrial growth and artificial intelligence transformation of the manufacturing industry will be created, with an anchor investment of at least 1 trillion won ($665.5 million), the industry ministry said Monday.
The so-called industrial growth fund has been designed to support the Seoul government's key economic initiatives, including the manufacturing AI transformation (M.AX), balanced regional growth and fostering of new growth engines, over the next three years, according to the Ministry of Trade, Industry and Resources.
Private banks managing the ministry's research and development (R&D) fund pledged to make anchor investments of a combined 1.1 trillion won for the fund, including 620 billion won to be extended by Hana Bank, the ministry explained, noting it will work to secure more investment from the private sector.
As the first sub-fund of the industrial growth fund, a M.AX innovation fund will be established to invest in projects related to the manufacturing AI transformation initiative, including those aimed at developing humanoid robots, AI factories, future mobility and autonomous vessels, the ministry said.
Based on an anchor investment of 100 billion won, the government aims to attract a total of 500 billion won for the M.AX fund.
The ministry also said it has signed a cooperation agreement with banks and related authorities to provide financial support worth a combined 700 billion won, including technology guarantee and trade insurance programs, to companies participating in innovative R&D projects over the next three years. (Yonhap)