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South Korea to Launch 600 Billion Won Fund for AI and High-Tech Loans
The government will start offering a fund of up to 600 billion won, or about $412 million, from May 22 to help banks and brokerages increase lending to companies in artificial intelligence and other high-tech sectors. The fund will initially place more risk on the government for potential losses while placing some limits on investor gains.
May 6, 2:03 AM·1m read1 source
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The government will launch a fund of up to 600 billion won ($412 million) later this month to support increased lending to firms specializing in artificial intelligence and other high-tech sectors, officials said Wednesday. According to the Financial Services Commission, the fund will have an initial size of at least 600 billion won and will be sold from May 22 to June 11 through banks and brokerages.
The initiative aims to encourage greater loan availability for companies working in artificial intelligence, rechargeable batteries, hydrogen, biotechnology and related industries. The fund is structured to place more of the burden on the government in the event of investment losses.
There will be some restrictions for investors if they seek gains, according to the Financial Services Commission.
The program seeks to reduce risk for private lenders and investors when providing financing to high-tech sectors that officials view as strategically important. By absorbing a larger share of potential losses, the government hopes to stimulate lending that might otherwise be constrained by commercial risk assessments.
Sales of the fund will be available for three weeks. Investors will participate through existing bank and brokerage channels during the subscription period that ends on June 11.
