South Korea announced on Wednesday its plan to establish a $34 billion policy fund aimed at supporting companies engaged in strategic technologies like chips and autos amid escalating global competition and protectionism.
To bolster this initiative, the government unveiled new policies aimed at attracting talent from cutting-edge industries worldwide, stating, "Competitiveness in advanced strategic industries has become crucial for national economic security in light of increased external uncertainties under the new U.S. administration."
The government referred to the current circumstances as a "war without gun smoke." Since taking office in January, U.S. President Donald Trump has implemented measures targeting key trading partners and industries like chips, autos, and biopharmaceuticals.
The Korea Development Bank will administer the 50 trillion won ($34.37 billion) fund, providing financial assistance in the form of favorable loans and investments to companies in national strategic industries over the next five years.
In response to mounting global competition and supply chain challenges, South Korea has designated 12 industries, including semiconductors, future mobility, rechargeable batteries, biopharmaceuticals, aerospace, and artificial intelligence, as "national strategic technologies," entitling them to targeted financial aid and protection.
Moreover, a program tailored for the semiconductor industry introduced last year will be incorporated into the fund. Additionally, South Korea intends to facilitate skilled foreign professionals with experience in global corporations to transition to domestic advanced sector companies by offering "top-tier" visas and permanent residency options.
(Note: Exchange rate provided - $1 = 1,454.7000 won)