Industry ministry approves 1 trillion won in National Growth Fund projects

The Ministry of Trade, Industry and Energy approved financial support for five major projects totaling approximately 1 trillion won during its September fund management committee meeting. The approvals include a large-scale offshore wind power project and initiatives to advance artificial intelligence in the manufacturing sector.

DN Solutions, a leading machine tool manufacturer, will receive low-interest loans to build an advanced research and development center. The company plans to invest 223.7 billion won, including 150 billion won from the Advanced Strategic Industries Fund and private capital, to develop next-generation smart machines equipped with AI control technologies that self-correct errors using real-time sensor data.

The ministry also approved funding for Hwashin, an automotive parts maker in North Gyeongsang Province, to expand its production line for electric vehicle battery pack cases. Hwashin secured a 25 billion won loan toward a total investment of 32.3 billion won, utilizing specialized friction stir welding technology to minimize heat distortion and improve battery safety.

Another significant approval went to the Yawol offshore wind power project in Yeonggwang County, South Jeolla Province. The initiative involves constructing a 104-megawatt wind farm using 13 domestically developed 8-megawatt turbines by Doosan Enerbility, marking the first commercial application of large-scale domestic wind turbines in Korea. The 757 billion won project will receive 130 billion won in project financing loans from the strategic industries fund.

To ensure objectivity and transparency, the Financial Services Commission will establish a Risk Management Committee and a Post-Management Committee. Composed of external experts and officials from the Industrial Bank of Korea, the Risk Management Committee will independently review potential risks before proposals reach the main decision-making body, while the Post-Management Committee will oversee fund execution and recovery strategies after approval.

The new committees are scheduled to begin operations in October for cases submitted from that month onward. The industry ministry emphasized that government funding is essential to spreading the results of its manufacturing AI transformation alliance across the broader industrial base.

Through these latest approvals, the National Growth Fund has authorized a cumulative total of 18.9 trillion won across 35 projects from January through September, with regional projects accounting for 44.7 percent. Officials stated that including indirect investment funds expected in the fourth quarter, the fund is on track to early achieve its annual target of approving 30 trillion won.