March 6, 2025
SEOUL – The South Korean government has announced plans to establish a 50 trillion won ($34.4 billion) fund over the next five years to bolster strategic technology industries, including semiconductors, secondary batteries and artificial intelligence, amid intensifying global tech competition.
“Competition is escalating as the entire industry undergoes rapid transformation centered around cutting-edge technologies. In this swiftly changing industrial landscape, ‘seizing time’ is more crucial than anything else,” acting President Choi Sang-mok said during a meeting with economy-related ministers at the government complex in Seoul on Wednesday.
The new funding program is designed to support the industrial ecosystem comprehensively, with a focus on infrastructure and technology development for companies engaged in national strategic technologies. Eligible sectors include semiconductors, secondary batteries, displays, biopharmaceuticals, defense, robotics, vaccines, hydrogen technology, future mobility and artificial intelligence.
Administered by the state-run Korea Development Bank, the 50 trillion won fund will provide low-interest loans — comparable to government bond rates — and equity investments through a designated special-purpose company. Early-stage investments in infrastructure and technological development will be a key component of this initiative.
To strengthen South Korea’s high-tech industrial ecosystem, the government intends to extend support not only to large conglomerates, but also to small and medium-sized enterprises.
The 50 trillion won initiative will include some part of a previously announced 17 trillion won policy financing plan for the chip industry.
Authorities plan to submit an amendment to the Korea Development Bank Act to the National Assembly within this month, creating a legal framework for the new fund.
The fund comes at a critical time as South Korea faces growing global competition, particularly from China, in maintaining its position as a digital powerhouse. The country is also working to protect its export-driven economy from rising protectionist measures, particularly following new US tariffs on Canada, Mexico and China, introduced on Tuesday.
In response to demographic shifts caused by a rapidly aging population and declining birth rates, the government has introduced a revised visa strategy aimed at attracting top global talent.
“To revitalize our economy and society while adapting to demographic and economic changes, leveraging foreign labor is no longer an option but a necessity,” Choi said while presiding over a meeting with the Committee for Policy on Foreign Human Resources on Wednesday.
By the end of March, the government will introduce a “Top-Tier Visa” for foreign professionals with exceptional skills in high-tech fields, including semiconductors, displays, rechargeable batteries, biopharmaceuticals, robotics and defense.
To qualify, applicants must meet the following criteria: a master’s or doctoral degree from a top 100 global university, over eight years of experience, with at least three years at a top 500 global company, and employment at a Korean high-tech firm offering an annual salary exceeding three times the gross national income per capita (approximately 140 million won).
Holders of the Top-Tier Visa, along with their families, will be granted resident (F-2) status, allowing for long-term stays and unrestricted economic activities in Korea. They would become eligible for permanent residency after three years.
The government also plans to introduce a “Youth’s Dream in Korea” visa, providing opportunities for cultural experiences and internships to young individuals from allied nations, particularly UN member states that participated in the Korean War or those with strong economic ties to Korea.
“This visa aims to foster a virtuous cycle of talent development and promote a positive image of Korea abroad,” the Ministry of Trade, Industry and Energy said in a statement.
Starting in March, authorities will launch a pilot project for a “Metropolitan Visa,” allowing local governments to recommend foreigners for visa issuance based on regional labor demands. This regional visa system will help directly attract talent to areas in need of economic revitalization, with a focus on student (D-2) and special ability (E-7) visas to address manpower shortages across various industries.