Korea’s coverage finance system is coming into a brand new part of scale and precision. The Korea Growth Financial institution (KDB) has launched the ₩7.45 trillion Nationwide Progress Fund for 2026, marking one of many nation’s most vital funding initiatives so far for semiconductors, synthetic intelligence (AI), and deep tech. The plan goals to anchor affected person capital in sectors that may outline Korea’s industrial competitiveness over the following twenty years.
KDB Begins Fund Supervisor Choice for 2026 Nationwide Progress Fund
On January 15, the Korea Growth Financial institution (KDB) introduced its plan to pick out administration corporations for 4 monetary father or mother funds below the 2026 Nationwide Progress Fund, totaling KRW 7.45 trillion (approx. USD 5.6 billion).
The initiative might be applied by oblique funding, with chosen fund managers matching authorities contributions with non-public capital to type subsidiary (sub-) funds. KDB’s purpose is to mobilize non-public participation at scale whereas directing capital towards strategic and future-oriented industries.
4 important classes will compose the fund:
- Coverage-Based mostly Fund (Industrial Help)
- Coverage-Based mostly Fund (Targeted Help)
- Extremely-Lengthy-Time period Know-how Funding Fund
- Public Participation Fund
One administration firm might be appointed to function every class.
Coverage and Strategic Focus: Deep Tech, AI, and Scale-Up Ventures
The Coverage-Based mostly Funds account for the most important portion, focusing on a mixed KRW 3.8 trillion in sub-funds.
The Industrial Help Fund will commit KRW 2.4 trillion, together with KRW 160 billion in authorities seed capital, to spend money on small and mid-sized enterprises (SMEs) in superior strategic sectors equivalent to semiconductors, AI, and next-generation manufacturing. Its mandate emphasizes broad-scale help to strengthen world expertise competitiveness.
The Targeted Help Fund will make investments KRW 2.2 trillion, with KRW 90 billion in authorities capital, to type a KRW 1.2 trillion sub-fund divided into:
- Scale-up Fund (KRW 500 billion) – to assist mid-tier corporations valued above KRW 100 billion develop globally.
- AI and Semiconductor Fund (KRW 500 billion) – to strengthen Korea’s aggressive edge in two high-priority strategic industries.
- Regional Funding Fund (KRW 200 billion) – to spice up native innovation ecosystems past the capital area.
Deep Tech and Public Participation: Constructing Lengthy-Time period Nationwide Progress Capital
A defining function of this initiative is the Extremely-Lengthy-Time period Know-how Funding Fund, which targets deep tech ventures with lengthy R&D cycles.
This fund will complete KRW 880 billion, combining KRW 80 billion in authorities contributions with KRW 600 billion in complete capital. It is going to function for as much as 20 years, offering affected person funding to assist expertise startups and research-driven corporations commercialize improvements with out untimely stress for returns.
Complementing this can be a KRW 720 billion Public Participation Fund, designed to permit residents to share in the advantages of Korea’s high-tech industrial progress. The fund aligns with the federal government’s effort to develop funding inclusivity whereas channeling capital towards the longer term economic system.
Qualification and Choice Timeline
Eligible candidates have to be licensed below Korea’s Capital Markets Act to handle non-public collective funding schemes and have not less than KRW 1 trillion in belongings below administration (AUM) as of the top of 2025.
Proposals are due by February 5, 2026, and KDB will consider corporations primarily based on their operational historical past, personnel experience, and fund administration plans. Remaining picks are scheduled for March 2026.
Chosen managers might be answerable for fund setup, sub-fund operator choice, funding execution, and post-investment oversight.
A Structural Leap in Korea’s Enterprise Finance Mannequin
The Nationwide Progress Fund represents a crucial evolution in Korea’s policy-based enterprise finance. Not like earlier government-backed autos centered on quantity and short-term deployment, this framework emphasizes long-term deep tech commercialization and strategic business resilience.
It aligns with Korea’s broader industrial coverage route, which facilities on securing provide chain autonomy, scaling AI and semiconductor capabilities, and nurturing globally aggressive deep tech startups.
By combining authorities seed funding with private-sector capital, KDB is signaling a mannequin shift—from short-horizon stimulus to structural innovation finance. This method additionally positions Korea as a regional benchmark for Asia-Pacific coverage enterprise ecosystems, significantly within the intersection of public capital and technology-driven enterprise progress.
Korea’s Deep Tech Period Calls for Affected person Capital
The KRW 7.5 trillion Nationwide Progress Fund embodies Korea’s recognition that frontier applied sciences require greater than enterprise momentum—they require endurance.
With 20-year capital horizons, coordinated fund-of-funds buildings, and express targets for AI, semiconductors, and regional scale-ups, the initiative stands as a coverage blueprint for sustainable industrial innovation.
Now, for founders, it alerts a brand new pathway to entry long-term capital. In the meantime for traders, it redefines Korea’s function as considered one of Asia’s most subtle deep tech financing hubs.
– Keep Forward in Korea’s Startup Scene –
Get real-time insights, funding updates, and coverage shifts shaping Korea’s innovation ecosystem.
➡️ Observe KoreaTechDesk on LinkedIn, X (Twitter), Threads, Bluesky, Telegram, Fb, and WhatsApp Channel.
Elevate your perspective with NextTech Information, the place innovation meets perception.
Uncover the most recent breakthroughs, get unique updates, and join with a worldwide community of future-focused thinkers.
Unlock tomorrow’s developments right now: learn extra, subscribe to our publication, and change into a part of the NextTech neighborhood at NextTech-news.com
