South Korea launched an 880 bln won (≈$631m) ultra-long technology fund today,
offering up to a 16-year investment horizon for advanced tech sectors. Policy
capital comprises 77% (680 bln won), including 600 bln won from the Advanced
Strategic Industries Fund and 80 bln won in fiscal funding; the Financial
Services Commission and Korea Development Bank are driving the initiative. The
fund will target next-generation semiconductors, biotech and related advanced
industries; investee eligibility requires vetting by a technology credit
guarantee fund or equivalent legal assessment. To limit concentration, at least
40% of allocations must be invested outside AI and semiconductors; early-stage
co-investment and overseas M&A receive weighted incentives. Asset managers will
be appointed as three small managers (80 bln won each) and four large managers
(160 bln won each); proposals close Sept. 3, selection is due in October and
disbursement could be completed by year-end. Manager evaluation will emphasize
sector-specific teams and expert networks.
