The National Growth Fund, aimed at fostering pivotal industries in South Korea, has selected Samsung Electronics' Pyeongtaek Plant for a substantial financial package to aid in the establishment of an AI semiconductor cluster. Announced by the Financial Services Commission, this initiative will allocate 2.5 trillion won in low-interest loans, split between the Advanced Strategic Industry Fund and major banks, at rates between 2-3% for a term of five years. This funding is part of a larger 60 trillion won investment drive intended to enhance South Korea's capabilities in advanced high-bandwidth memory (HBM) and AI semiconductor foundries.

Additionally, the financing structure for the Pyeongtaek project is designed to bolster Samsung’s own investments — with 6.3 trillion won being self-financed by the company — while the remaining funding comes from the National Growth Fund. Furthermore, a new performance guarantee program aimed at small to mid-sized partner firms will facilitate access to low-interest loans, broadening the domestic supply chain for equipment in advanced manufacturing processes.

Concurrently, a separate project involving a solid-state battery material plant in Ulsan will receive 1 trillion won in funding through similar low-interest loans, emphasizing the strategic goal of supporting local production of key battery materials. This initiative is timely, as international competition in battery technology is intensifying, with global companies accelerating their efforts to transition to solid-state battery production by 2027. Through this fund, the South Korean government aims to nurture a competitive ecosystem for high-tech industries in the region, further positioning the country as a leader in future technology sectors.