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South Korea's $101 Billion Bet: AI and Semiconductors Get Mega-Fund Boost

South Korea is putting serious money behind its tech ambitions. A massive new public fund worth over $100 billion will first flow into artificial intelligence, semiconductors, and batteries. The initial projects are very specific, targeting things like advanced AI chip production and large-scale GPU clusters. This move is part of a broader push to accelerate AI adoption and secure leadership in key future industries.

Key Points: South Korea Invests Public Growth Fund in AI and Semiconductors

  • A 150 trillion won Public Growth Fund will first support AI and semiconductors
  • Initial projects include AI chip facilities and a national computing center
  • Over 30 trillion won is slated for investment in 2024 across key sectors
  • 40% of the fund is earmarked for projects that induce regional growth
2 min read

S. Korea to funnel public growth fund into AI, semiconductors

South Korea directs its new 150 trillion won Public Growth Fund to AI, semiconductors, and batteries, with over 30 trillion won to be invested next year.

"The FSC has selected seven projects to be first funded by the 150 trillion-won fund. - Lee Eog-weon, FSC Chairman"

Seoul, Dec 19

The newly launched mega-sized Public Growth Fund will first be used to support the artificial intelligence (AI), semiconductor and battery sectors, the chief of the state financial regulator said on Friday.

Lee Eog-weon, chairman of the Financial Services Commission (FSC), said the FSC has selected seven projects to be first funded by the 150 trillion-won (US$101.5 billion) fund during a policy briefing to President Lee Jae Myung, reports Yonhap news agency.

The projects include the development of advanced AI chip production facilities, large-scale graphic processing unit (GPU) clusters using the recently purchased GPUs from Nvidia, a national AI computing center and materials for secondary batteries.

Last week, the mega-sized fund, one of the Lee administration's key economic pledges, set sail with a focus on accelerating AI adoption across sectors and channeling resources into key industries, including secondary batteries and biotechnology, over the next five years.

Lee said 40 percent of the fund will be used for investment projects that can help induce regional growth.

According to the FSC, over 30 trillion won will be invested next year, with the initial investments including 6 trillion won for the AI sector, 4.2 trillion won for the semiconductor segment and 3.1 trillion won in future mobility.

Meanwhile, South Korea seeks to begin staging nuclear fusion power generation tests in 2030 at the earliest, nearly 20 years ahead of its original schedule, the government announced on Friday, amid growing energy demand stemming from an artificial intelligence (AI) boom.

The National Fusion Energy Committee announced the blueprint outlining the direction of its research in the sector, along with goals to secure eight related critical technologies, according to the Ministry of Science and ICT.

Nuclear fusion power is considered a promising option for generating cleaner and safer energy, as it does not produce any carbon emission while also generating less radioactive waste than nuclear fission.

- IANS

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Reader Comments

P
Priya S
Very impressive forward planning. The part about nuclear fusion being fast-tracked due to AI energy demand is eye-opening. It shows they are thinking about the complete ecosystem, not just the chips. Hope our policymakers are reading this.
R
Rohit P
While this is great for them, I hope India's semiconductor mission gets similar aggressive funding. We can't afford to be left behind in this tech race. Atmanirbhar Bharat needs more than slogans, it needs this kind of financial firepower.
S
Sarah B
The scale is mind-boggling. 150 trillion won... It's good to see a country betting big on future tech. The regional growth focus (40% of fund) is also a smart move to ensure benefits are spread out, not just concentrated in Seoul.
V
Vikram M
Respectfully, I have to ask: is putting so much public money into such high-risk, capital-intensive sectors the best use of funds? What about basic infrastructure, education, or healthcare? Hope they have a solid ROI plan and not just chasing trends.
K
Kavya N
The fusion energy part is the real game-changer! Clean, limitless power for the AI data centers of the future. This is strategic thinking at its best. South Korea is playing chess while others are playing checkers. 👏

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