Park Sang-jin, chairman of the Korea Development Bank, is steering the institution toward a new role: a financial platform for South Korea's AI industrial revolution. Since taking office, he has anchored this shift around a 150 trillion won National Growth Fund and an advanced strategic industry fund, moving the bank from a traditional policy lender to an investment bank that actively designs the competitiveness of the nation's industries.
Redefining policy finance for the AI era
Park defines the bank's purpose clearly. He believes it should evolve from supporting companies during economic downturns to becoming an investment institution that nurtures future industries. AI is not just a digital technology; it is the starting point of an industrial revolution and a strategic industry that determines national competitiveness.
In his inaugural speech, Park said, "The importance of finance as a policy tool to support the real economy and foster future growth industries is increasing."
Funding the AI industrial base
The centerpiece of Park's strategy is the National Growth Fund, managed by the Korea Development Bank to supply long-term capital to semiconductors, AI, secondary batteries, and biotechnology. The fund targets early-stage technology companies and large-scale projects that private investors typically avoid. A dedicated organization within the bank now oversees the fund, and Park describes 'productive finance' as the mechanism to turn AI into a national growth engine.
Beyond the fund, the bank is directly backing AI infrastructure. It signed a financial agreement with Hyundai Motor Group for the Saemangeum project, channeling money into AI data centers, hydrogen, and robotics. Park sees Saemangeum as a future industrial hub where AI, energy, and advanced manufacturing converge. He argues that policy finance should not just follow trends but design industries from the start.
To reinforce this, the bank launched the Advanced Strategic Industry Fund and issued its first fund bonds. This creates a pipeline for long-term capital to AI, semiconductors, energy, and advanced manufacturing. The bank's authorized capital was also expanded to 45 trillion won, increasing its investment firepower. Park frames the AI competition as a battle for capital, not just technology. AI companies need patient, long-term funding, and that is the role the Korea Development Bank is stepping into.
From restructuring to AI investment
Park is a corporate restructuring expert who spent 30 years at the Korea Development Bank, overseeing the restructuring of companies like Kia Group, Daewoo Heavy Industries, and Daewoo Motors. He understands the importance of investing in future industries through his experience in managing declining sectors. AI is not merely a technology that replaces existing industries; it is an innovation that transforms the industrial structure itself.
He believes that while the bank previously protected industries through restructuring, it must now create new industries through investments in AI and advanced sectors.
The essence of financial entrepreneurship
Park's vision for financial entrepreneurship can be summarized as 'finance that invests in the future of South Korea.' He views AI not merely as a tool for enhancing the efficiency of financial companies but as a core asset that determines national industrial competitiveness. The National Growth Fund, the Advanced Strategic Industry Fund, and the expansion of investments in AI data centers and semiconductors all stem from the same philosophy.
The Korea Development Bank is no longer just a policy finance institution. Park's vision is for it to become an investment bank for South Korea's AI industrial revolution. In the future, the competitiveness of South Korea in the AI era will emerge not only from technology but also from finance that believes in and invests in the future. Park is currently rewriting the direction of that finance.
Why this matters for finance professionals
For finance leaders and institutional investors, the Korea Development Bank's transformation signals a shift in how policy capital can shape industrial competitiveness. The 150 trillion won fund and the focus on AI infrastructure demonstrate that long-term, patient capital is becoming a strategic weapon in the AI race. Finance professionals who understand this intersection of policy, technology, and investment will be better positioned to navigate the capital-intensive demands of the AI economy. For ongoing analysis of these shifts, visit the AI for Finance resource hub.
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