Finance ministry plans 20 trillion won contribution to strategic fund

The finance ministry said it plans to contribute 20 trillion won ($14.3 billion) in government-held stakes and unlisted shares received in lieu of tax payments to a strategic sovereign wealth fund that would invest in strategic-industry companies.

The contribution is part of the 2027 comprehensive plan for national property. State properties were valued at 1,403 trillion won ($1 trillion) at the end of 2025.

"We will make policy efforts to create a virtuous cycle that raises the value of state assets, creates national wealth and returns the gains to the people," Gu Yun-cheol, deputy prime minister and finance minister, said.

The government will accelerate construction of 28,000 public homes for young people and newlyweds, scheduled to begin in stages from 2027. To speed the projects, it will shorten administrative procedures including project-plan reviews, design and permitting, and consider different project-delivery methods.

Idle land in Guro, Seoul, and Sejong will supply about 2,000 dormitory units for young people, while a pilot senior-residence program is planned for Busan and other areas. Former police substations and other facilities will be renovated into low-rent workspaces for older people, young people and social enterprises.

"Assets held by the state should be actively used as strategic assets that support future growth and people's lives," Gu said.

The government will lease idle sites near highways to local governments at low cost and expand public truck garages to 72 by 2029. National-property concessions, including fee reductions and long-term leases, will support artificial intelligence, semiconductors and renewable energy, while the ministry will assess existing concessions for public institutions able to cover their own costs.

Through reciprocal property transfers between the finance ministry and Korea Forest Service, state properties requiring protection will be used for forest conservation, while economically viable sites will support renewable-energy projects.