SEOUL, Sept. 27 (Yonhap) — South Korea will push to set up a defense industry investment fund worth about 120 billion won ($83.9 million) from 2025 to support defense companies specializing in artificial intelligence, drones and other areas, the state arms procurement agency said Tuesday.

Hana Bank – a local institution chosen to manage research funds for the Defense Technology and Quality Agency and the state-funded Defense Development Agency – will make investments worth a total of 60 billion won from 2023-25 ​​for the establishment of a parent fund, according to the Defense Acquisition Program Administration (DAPA).

The Korea Growth Investment Corp. was selected to manage the parent fund and set up three subordinates, which will attract a total of 60 billion won from private investors during 2023-25. The subordinated funds will be managed for ten years.

The country’s first such policy fund aims to support small and medium defense enterprises with advanced defense technologies in various fields, including energy, aerospace and semiconductors, according to DAPA.

“The purpose of establishing this fund is to enhance industry ecosystem innovation in response to changes in the overall defense industry environment,” DAPA said in a statement. hurry.

The local bank and fund manager were selected through a public tender process.