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Korea to create 200 billion won fund for underdeveloped regions in 2026

Published: 07 Jan. 2026, 11:36

The logo of the Ministry of Economy and Finance is seen in Sejong on Jan. 6. [YONHAP]

The government will create a 200 billion won ($138 million) fund this year to ensure a steady supply of investment capital for regions struggling with population decline and a weakening industrial base, the Finance Ministry said Wednesday.

The fund's structure will be expanded to include a total of six participating institutions, up from three in 2025, according to the Ministry of Economy and Finance, with the newly added institutions expected to invest a combined total of about 50 billion won.

Taking into account 277.2 billion won in unspent funds from the previous year, which have a two-year investment period, the government expects total available investment capacity to reach approximately 477.2 billion won this year.

The fund is expected to be launched in April following consultations with the new investment institutions, the ministry said.

The government also plans to provide advanced training and consulting services for local governments, and regularly host networking events involving fund managers, investors and local authorities.

Yonhap