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FSC chairman says National Growth Fund will prioritize AI, semiconductors

Published: 12 Nov. 2025, 18:31

Financial Services Commission Chairman Lee Eog-weon speaks during a press briefing at the government complex in Jongno District, central Seoul, on Nov. 12. [NEWS1]

The National Growth Fund — a strategic fund for advanced industries that is set to launch next month — will prioritize investment in artificial intelligence (AI) and semiconductor companies, Financial Services Commission (FSC) Chairman Lee Eog-weon said on Wednesday.

Addressing the recent spike in credit loans driven by leveraged investments, Lee firmly stated, “It does not pose a threat to financial soundness.”

“We plan to launch [the National Growth Fund] on Dec. 10,” Lee said at a press conference held at the Government Complex Seoul on Wednesday. This marked his first press conference since taking office on Sept. 13. “The first investment areas will likely be AI and semiconductors.”

The fund will be built on a public investment of 75 trillion won ($51 billion) from the Korea Development Bank. The government plans to match this with an additional 75 trillion won from private sector capital, forming a 150-trillion-won National Growth Fund aimed at boosting future-focused industries.

“Korea is in a position in which the private sector struggles to make large-scale investments due to technological uncertainty and associated risks,” Lee said. “Policy capital and the National Growth Fund will play a priming role to help share risks and lay the groundwork.”

Lee also announced that the government plans to approve integrated managed accounts (IMAs) within the month. Under this system, securities firms must guarantee principal and invest customer deposits into corporate finance-related assets, sharing the resulting profits. The initiative is part of efforts to modernize capital markets and expand the supply of venture capital.

Financial Services Commission Chairman Lee Eog-weon speaks during a press briefing at the government complex in Jongno District, central Seoul, on Nov. 12. [NEWS1]

“We will move forward step by step with the designation of new comprehensive investment firms, approval of IMAs and issuance of short-term notes as soon as reviews are completed,” he said.

On the recent surge in credit loans driven by bullish sentiment in the stock market, Lee said, “Household lending increased compared to the previous month, but home mortgage lending has dropped significantly from 4 trillion won in June to 1 trillion won now. While credit loans have been fluctuating, we don’t see them threatening financial soundness.”

Regarding criticism that the new real estate loan regulations introduced on June 27 and Oct. 15 have blocked ordinary citizens from buying homes, Lee said, “We apologize for the inconvenience that this has caused genuine homebuyers,” but stressed, “Stabilizing the real estate market remains the top priority for now.”

“To minimize inconveniences, we have maintained the existing loan-to-value ratio for policy mortgages primarily used by first-time homebuyers, young people and newlyweds,” Lee added.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM SEON-MI [[email protected]]