Issue Shifting to productive finance and an industrial finance coordination system

Summary

The report finds that the growing scale of investment in advanced manufacturing is now beyond what companies and public finances can shoulder alone. Funding based on innovation in industrial finance is therefore needed, which requires Korea's financial industry to transform into a system able to supply productive finance. The government has drawn up a plan for a National Growth Fund of 100 trillion won or more to support this shift. The report proposes an industrial finance coordination system that combines industrial and financial expertise to back national strategic industries. It suggests differentiating the fund from existing funds, reviewing a stepwise conditional easing of the separation of industrial and financial capital, and forming an industrial finance policy alliance to find projects for ecosystems, supply chains and balanced regional growth.