South Korea plans 34 trillion won fund to support battery and biotech

SOUTH Korea aims to invest at least 34 trillion won (S$31.7 billion) to help companies develop cutting-edge technologies in the battery and biotech sectors citing rising geopolitical tensions and competition from China.

The government will set up a new fund under the state-run Korea Development Bank to offer low interest rate loans and buy stakes in the high-tech industries, a statement from the Finance Ministry said on Wednesday (Feb 5). It did not specify a start date or completion timeline for the investments, or details of the fundraising.

The announcement comes a day after OpenAI chief executive officer Sam Altman visited Seoul where he met with executives of chipmakers Samsung Electronics, SK and Internet company Kakao.

The government will also launch a “national artificial intelligence (AI) committee” as soon as possible to make the country one of the world’s three leading AI nations, it said, adding that the technology of Chinese AI startup DeepSeek came as a “fresh shock”.

The ministry will discuss in parliament the revisions required for relevant laws in March.

In December, the government unveiled plans to invest US$38 billion to build new supply chains for electric vehicles and batteries to counter China’s dominance. South Korea, which is one of the world’s biggest chips exporters, faces lingering uncertainty over President Donald Trump’s threats to impose tariffs. BLOOMBERG