State investment fund to expand efforts to foster physical AI

The chief of the country's financial regulator said Wednesday that the National Growth Fund, a megasized investment fund aimed at nurturing key industrial sectors, will help finance the emerging physical AI sector.

Under the plan, LS Cable & System was named as the fund's first investment, although details were not unveiled.

Lee Eog-weon, chairman of the Financial Services Commission (FSC), said physical AI will help boost productivity and create new growth locomotives.

The investment plan came as the country announced a massive investment plan for the semiconductor, AI and robotics sectors earlier this week.

The FSC said Korea can win a competitive edge in the AI factory, robotics and future mobility sectors given the country's high-end manufacturing sector.

"Along with the Ministry of Trade, Industry and Resources, we will continue to support leading firms for investment and policy backup," Lee said.

Launched late last year, the National Growth Fund aims to nurture startups in strategic industries, such as AI, bio and semiconductors. The government plans to raise up to 150 trillion won ($96.3 billion) both from the private and public sectors and operate the fund for the next five years.

Yonhap