SK To Raise Tech Innovation Funds Of W400 Billion
South Korea plans to provide support to the companies who develop and innovate products and services that are utilizing high-end technologies by raising 400 billion won ($354 million) until 2024, the government said on Monday.
Ministry of Trade, Industry and Energy (MOTIE) said that the first batch of funding which costs 102 billion won, will be rolled out within this year for the said digital technology innovation. The budget surpassed the 80 billion won ($71 million), which was the original target budget for the said tech innovation funds.
The ministry also added that the fund would be used in helping tech companies that are harnessing artificial intelligence (AI), the internet of different Things, mobile technologies, big data, and cloud computing.
Moreover, the fund will be raised jointly by various private and public financial institutions in the country. The fundraising for the technological development will be managed by financial institutions such as KDB Capital Corp and L&S Venture Capital, financial corporations that specialize in investments, loan, business, and moral support to other companies.
In retrospect, the ministry pointed out that the project will aid South Korea in coping with the changing environment, especially in global supply change during the fourth industrial revolution and the havoc brought about by the COVID- 19 pandemic.
The country is also planning to raise 80 billion won additional for this year's budget.
In February, South Korea has topped among the "2021 Most Innovative Economies" ranking, which was conducted by Bloomberg Innovation Index. The country regained the title after Germany dropped to fourth place, which previously topped the said ranking.
The Bloomberg index uses dozens of criteria in analyzing the ranking between countries with seven equally weighted metrics, which includes a concentration in the high technology advancement among public companies, spending in research and development and capability in manufacturing.
