Gyeonggi Province is accelerating efforts to establish a public policy finance institution dedicated to investing in strategic industries such as semiconductors and artificial intelligence (AI).
The province said Thursday it has formed a task force aiming to establish the "Gyeonggi Future Investment Corporation" in the second half of next year. The corporation, a campaign pledge of Gyeonggi Governor Choo Mi-ae, will serve as a policy finance institution supporting the province's future industries and attracting private investment.
The task force consists of two divisions—a general management division and a fund establishment division—with 10 members. It includes the Gyeonggi provincial government's Economic Affairs Office, Future Growth Industry Bureau, and AI Bureau, along with affiliated agencies such as the Gyeonggi Credit Guarantee Foundation and the Gyeonggi Province Economic Science Promotion Agency. The task force will handle administrative procedures ahead of the corporation's establishment, including holding public hearings and registering the corporation. At the same time, it will design the structure of the policy fund that will serve as the corporation's core financing, and prepare plans to attract private capital and secure funding through cooperation with cities and counties.
Gyeonggi Province plans to operate the Gyeonggi Future Investment Corporation as a two-track structure, dividing it into the "corporation," which serves as the management and operation body, and the "investment fund," which serves as the investment asset. The structure is designed to facilitate the attraction of external financial investment and enhance the expertise of investment operations. Under the plan being reviewed, a parent fund in the form of a national growth fund would be created based on public funds, with multi-layered sub-funds structured according to the characteristics and risk profiles of projects. The actual operation of the sub-funds would be entrusted to private professional fund managers.
The province also plans to incorporate mutual-growth measures such as talent development into the investment review process related to large corporations. In particular, it envisions cooperating with semiconductor hub cities and counties such as Hwaseong, Pyeongtaek, and Icheon to secure funding, so that the gains from the semiconductor industry boom can be reinvested in strategic industries.
"It is difficult to sustain semiconductor achievements with short-term measures such as funds alone," Governor Choo said. "That is why a solid institutional framework such as an investment corporation is needed." She stressed, "As the semiconductor clock is speeding up, we will quickly and firmly build a foundation for sustainable growth and shared growth."
