Korea pumps $23 billion into EV batteries and biotech in bid to spur growth

Home > Business > Economy

print dictionary print

Korea pumps $23 billion into EV batteries and biotech in bid to spur growth

Acting President and Minister of Economy and Finance Choi Sang-mok speaks during a ministerial meeting on current affairs at the government complex in central Seoul on Feb. 5. [MINISTRY OF ECONOMY AND FINANCE]

Acting President and Minister of Economy and Finance Choi Sang-mok speaks during a ministerial meeting on current affairs at the government complex in central Seoul on Feb. 5. [MINISTRY OF ECONOMY AND FINANCE]

 
Korea will establish a fund worth at least 34 trillion won ($23.4 billion) to support high-tech sectors such as EV batteries and biotechnology, acting President Choi Sang-mok said Wednesday.
 
The move comes as the country faces rising trade uncertainty driven by U.S. President Donald Trump’s tariff threats, intensifying global market competition, and waning domestic growth momentum.
 

Related Article

 
“A new fund to support the high-tech industries and technologies such as batteries and bio will be established at the Korea Development Bank,” Choi said during a ministerial meeting on current affairs and industrial competitiveness.
 
“The fund will be at least double the size of the 17 trillion won financial support program for the semiconductor industry,” the acting president stated.
 
The fund will be used to provide financial support, including low-interest loans and equity investments in strategic sectors. The government plans to work with the National Assembly in March on the legislative revisions necessary to establish the fund.
 
During the meeting, the acting president addressed the Trump administration’s tariff implementation and the rise of DeepSeek’s new AI model, saying, “Equations surrounding our industry are becoming increasingly more complicated.”
 
“The delayed tariff implementation by the United States on Canada and Mexico, which was initially set to [take] effect yesterday, is a breather,” said Choi.
 
“However, we need to closely monitor the situation given that the uncertainty in the global trade environment persists with the tariffs on China imposed as planned.”
 
The acting president described the debut of DeepSeek’s R1 AI model as a “fresh shock,” suggesting that the ongoing AI race would intensify with competition now extending beyond infrastructure to software development.
 
The National Artificial Intelligence Committee plans to convene a meeting this month to discuss detailed strategies for enhancing the country’s AI competitiveness. The government also aims to accelerate the launch of a state-run AI computing center.
 
The Ministry of Science and ICT announced on Jan. 22 that it would build said national AI computing center, which is scheduled to begin operation in November. It plans to pour in up to 2 trillion won through a public-private partnership, aiming to secure advanced GPUs for AI development. The center will support universities, research institutes and startups in developing AI models and services.
 
Moreover, the government will expand its green financing support beyond the current 7 trillion won in loans and green bonds, allotting 1.5 trillion won to financial guarantees for companies in sustainable technology and low-carbon transition-related sectors.
 
Choi once again urged the National Assembly to pass economic bills including the special act on semiconductors, saying, “Efforts to enhance our industrial competitiveness will be able to bear fruition only with the National Assembly’s support.”
 
On Tuesday, the government and the ruling People Power Party agreed to pass the special chips bill, which would permit employees of the semiconductor industry to work beyond the nation's 52-hour workweek cap, in February.
 
Updated, Feb. 5: Added details on new policy plans involving AI, and green financing.

BY SHIN HA-NEE [[email protected]]
Log in to Twitter or Facebook account to connect
with the Korea JoongAng Daily
help-image Social comment?
s
lock icon

To write comments, please log in to one of the accounts.

Standards Board Policy (0/250자)