In the age of the $150 trillion National Growth Fund, what you need to know about investment opportunities

the creation of the 150 trillion won National Growth Fund will kickstart large-scale investment in high-tech industries such as AI, semiconductors, and bio. learn more about how individual investors can get involved and the investment strategies of the beneficiaries.

why you should care about the National Growth Fund

in September 2025, the National Growth Fund became the talk of the economic world in South Korea. the expansion of the fund from the initially planned 100 trillion won to 150 trillion won has the market buzzing, especially with its focus on investing in future food industries such as artificial intelligence, semiconductors, and bio.

the National Reporting Conference, held at FrontOne in Mapo-gu, Seoul, was attended by the President, SK Group Chairman Choi Tae-won, Celltrion Chairman Seo Jung-jin, and other leading figures in the Korean economy. The reason for their gathering is simple. it's because they believe that the National Growth Fund is not just a government policy, but a game-changer that will reshape the Korean industrial landscape.

how will the 150 trillion won be invested?

the funding structure of the National Growth Fund is comprised of 75 trillion won from the Advanced Strategic Industry Fund, which is funded by the government and the Bank of Korea, and 75 trillion won from the private sector and financial institutions. it's an exact 50/50 public-private split.

the investment targets are clear. The 10 high-tech strategic industries are the main targets: AI 30 trillion won, semiconductor 20.9 trillion won, mobility 15.4 trillion won, bio and vaccines 11.6 trillion won, and secondary batteries 7.9 trillion won. it's noteworthy that it's not just throwing money around, but strategically selecting and focusing.

the support is also diverse. 15 trillion won in direct equity investment, 35 trillion won in indirect equity investment, 50 trillion won in infrastructure financing, and 50 trillion won in ultra-low-interest loans, which can be customized according to the company's situation. for example, if a company needs to build a large-scale factory, we will participate as an equity investor, and if a company needs to acquire a technology company, we will provide funding.

how to get involved as an individual investor

the question many people ask is: How can individual investors get involved? Fortunately, there are several paths open to them.

first, there will be publicly traded funds. these can be subscribed to in small amounts through brokerage firms or banks, and are designed with a subordinated structure where the government bears losses first, so the risk is relatively low.

second, you can buy government bonds issued by the government. this is a good option for investors looking for stable interest income.

third, you can invest indirectly through pension funds or financial institutions. when a national pension or retirement fund invests in the National Growth Fund, it is a natural way to indirectly participate.

sectors and companies to watch

after the announcement of the National Growth Fund, asset managers quickly began preparing to launch sovereign AI ETFs. the fund will include major Korean software companies such as NAVER, Kakao, Samsung SDS, LG CNS, The Zone Bizon, and Saltlux.

in fact, on September 10, when news of the fund's expansion broke, the KOSPI broke through the 3300 mark for the first time since 2021. Market experts expect semiconductors and securities stocks to take the lead in the second half of the year, as opposed to shipbuilding, defense, and nuclear power in the first half.

In addition to AI semiconductors, companies related to biopharmaceuticals, eco-friendly energy, secondary batteries, and robots are expected to directly benefit. In particular, companies related to the 10 high-tech strategic industries that the government has said it will focus on are likely to gain long-term growth momentum.

how is this different from past policy funds?

previous governments have created large-scale funds before. lee Myung-bak's Green Growth Fund, Park Geun-hye's Unification Fund, and Moon Jae-in's New Deal Fund are just a few examples. however, these funds either lost momentum with regime changes or were criticized for not meeting expectations in terms of returns.

what makes the National Growth Fund different from past funds is its clear goal of being an industry development platform. it has a long-term perspective of building the food industry of the future, not just chasing returns.

it's also noteworthy that we have 50% private participation. it is designed as a public-private partnership rather than a government-led program, which makes it highly sustainable. as emphasized by SK Group Chairman Choi Tae-won, the key to success will be who selects and operates the investments.

overseas, there are examples of successful sovereign wealth funds, such as the Norwegian sovereign wealth fund of $173.8 billion and the Abu Dhabi Investment Authority of $1.575 trillion. the difference is that these funds focus on investing in foreign assets, while sovereign growth funds focus on fostering domestic industries.

frequently asked questions (FAQs)

Q1. Can individuals invest directly in a sovereign growth fund?

A: Yes, you can. you can invest even in small amounts through public participation funds, which you can sign up for at securities firms or banks. You can also buy government bonds issued by the government.

Q2. Which companies will benefit the most?

A: Companies in 10 high-tech strategic industries, including AI, semiconductors, bio, mobility, and secondary batteries, are expected to directly benefit. In particular, companies in the AI (KRW 30 trillion) and semiconductor (KRW 20.9 trillion) sectors, where government investment is large, are worth paying attention to.

Q3. Previous government funds have failed, will this be different?

A: The National Growth Fund is different in that it has a high private participation rate of 50% and a clear goal of fostering industries. however, its success will depend on the institutional arrangements in place to ensure its continuity after regime change.

Q4. When will investments begin?

A: The High-Tech Strategic Industry Fund will be launched in early December and will invest KRW 15 trillion annually over the next five years. the timing of the public fund for individual investors has not yet been announced.

Q5. What are the investment risks?

A: The risk is lower than normal investments because it is designed as a subordinated structure where the government bears the losses first. however, all investments carry risk, and you should consider your own investment appetite and goals before making a decision.

wrapping up: What investors should prepare for

the National Growth Fund is not just a policy fund, but an opportunity to change the industrial map of South Korea. with a staggering 150 trillion won ($150 billion) being injected into cutting-edge industries, investment opportunities will grow as the companies involved grow.

individual investors can consider participating in the fund directly or investing in related stocks and ETFs that are expected to benefit from the fund, especially as more and more products are being launched that are tailored to policy themes, such as the Sovereign AI ETF.

however, it's important to remember the lessons of past policy funds. it's important to keep in mind the possibility of political changes and policy shifts, and to make investment decisions based on cold analysis rather than blind optimism.

we hope that the National Growth Fund will truly lead to the growth of the people, as its name suggests, and we wish you the best in your investment decisions. let us know in the comments how you plan to utilize this opportunity!