South Korea is preparing a jumbo fund to encourage artificial intelligence or AI transformation in the manufacturing sector. The initial investment is at least 1 trillion won, equivalent to 665.5 million US dollars.
Yonhap quoted Tuesday, May 19, reported that the fund was prepared by the South Korean Ministry of Trade, Industry, and Resources to support industry growth over the next three years.
The fund is named the industrial growth fund. Its targets include the transformation of AI manufacturing, more balanced regional economic growth, and the development of new growth sources.
The manufacturing AI program is known as M.AX. The focus is to bring AI further into the production sector. Projects targeted include humanoid robots, AI-based factories, future vehicles, and autonomous ships.
Private banks that manage the ministry’s research and development funds have committed to investing a combined initial investment of 1.1 trillion won. Of that amount, Hana Bank will channel 620 billion won.
The South Korean government will also seek additional investment from the private sector.
As the first phase, the South Korean government will establish the M.AX innovation fund. This fund is the first sub-fund of the industry growth fund and will be directed to AI manufacturing transformation projects.
With an initial investment of 100 billion won, the government targets the M.AX fund to attract a total of 500 billion won.
The ministry has also signed a cooperation agreement with banks and related authorities. The value of its financing support reaches 700 billion won for the next three years.
The support includes technology guarantees and trade insurance for companies involved in innovative research and development projects.
Through this scheme, Seoul wants to accelerate the entry of AI into the manufacturing industry. The government is also trying to combine public funds, bank investments, and private financing so that new industrial projects do not stop at the research stage.
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