South Korea has announced the creation of a major industrial growth fund with an anchor investment of at least 1 trillion won (US$665.5 million) to drive industrial growth and accelerate the AI transformation of the manufacturing sector. The initiative, unveiled by the Ministry of Trade, Industry and Resources, will support key government priorities including the Manufacturing AI Transformation (M.AX) program, balanced regional growth, and the development of new growth engines over the next three years.
Private banks managing the ministry’s R&D fund have pledged a combined 1.1 trillion won in anchor investments, with Hana Bank contributing 620 billion won. The ministry is also working to secure additional private sector investment to expand the fund’s reach.
The first sub-fund under this initiative, the M.AX innovation fund, will focus on projects related to manufacturing AI transformation. Areas of investment include humanoid robots, AI-driven factories, future mobility solutions, and autonomous vessels. Based on an initial anchor investment of 100 billion won, the government aims to attract a total of 500 billion won for the M.AX fund.
In addition, the ministry has signed cooperation agreements with banks and related authorities to provide financial support worth 700 billion won over three years. This support will include technology guarantees and trade insurance programs to assist companies engaged in innovative R&D projects.
Together, these measures reflect South Korea’s commitment to strengthening industrial competitiveness, fostering AI-driven innovation, and ensuring that the manufacturing sector remains a central pillar of its economic transformation.
