IBK invests W10b in Furiosa AI to bolster Korea's chip sovereignty
The state-run lender highlighted Furiosa AI's role in advancing Korea's independent AI chip technology, noting the company had turned down a buyout offer from a major US tech firm in favor of developing its own hardware.
Reports in March revealed that the offer came from Meta, which Furiosa rejected to focus on its next-generation accelerator, RNGD, slated for mass production in the latter half of this year.
The latest funding adds to a series of financial backing the policy lender has provided to Furiosa AI since its inception, including seed loans, venture capital and tech-focused financing. The lender also deployed its hybrid 'IBK Venture Loans' product, combining investment and loans, to bridge the firm's liquidity needs during the pre-mass production phase.
IBK said the 10 billion won injection was part of a broader 150 billion won raised in the funding round and expressed hope the investment would enhance Korea's competitiveness in AI chips and help local players expand globally.
'We will do our utmost to support Korea's venture ecosystem so that more companies like Furiosa AI can emerge,' said Kim In-tae, executive vice president of Innovative Financing Group at IBK. 'We remain committed to driving technological innovation and fostering a dynamic startup environment.'
IBK has supported ambitious startups through both financial and non-financial means, including 2.5 trillion won funneled into venture capital funds since 2023. In 2024, it also launched a public offering fund program aimed at channeling capital into AI and other key strategic industries.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
![[Lee Byung-jong] Is Lee-Trump bromance possible?](/_next/image?url=https%3A%2F%2Fwimg.heraldcorp.com%2Fnews%2Fcms%2F2025%2F08%2F14%2Fnews-p.v1.20250814.de9b5effcd2440afb6c47437e0126b08_T1.jpg&w=3840&q=100)
![[Lee Byung-jong] Is Lee-Trump bromance possible?](/_next/image?url=https%3A%2F%2Fall-logos-bucket.s3.amazonaws.com%2Fkoreaherald.com.png&w=48&q=75){kind=small}
Korea Herald
3 hours ago
- Korea Herald
[Lee Byung-jong] Is Lee-Trump bromance possible?
Former President Yoon Suk Yeol, now disgraced and awaiting trial for his ill-fated martial law declaration and other charges, may still be remembered in the United States for one surprisingly warm gesture. During his 2023 state visit to the White House, Yoon famously broke into a rendition of "American Pie," the beloved US pop classic. He was no great vocalist, but the effortless way he delivered the English lyrics showed clear preparation. The performance went viral in the US, and for many Americans, it became a quirky but genuine symbol of Yoon's effort to connect. Now, with just days to go before his own crucial meeting with US President Donald Trump, South Korean President Lee Jae Myung appears to be preparing in his own way -- by practicing his golf swing. Given Trump's well-documented love of the game, Lee seems to be betting that time on the fairway could help establish rapport. The strategy is hardly unprecedented: Former Japanese Prime Minister Shinzo Abe famously used golf to develop a strong personal relationship with Trump during his first term, a dynamic that many believe smoothed Tokyo-Washington relations. Lee may well be hoping to replicate that playbook. But for Lee, good chemistry with Trump would mean more than just pleasant rounds of golf. The upcoming summit will be a defining moment for his presidency and for South Korea's place in the world. On the economic front, the stakes could not be higher. Washington recently announced a 15 percent tariff on Korean exports to the US, tied to conditions that Seoul invest $350 billion in the American economy and purchase $100 billion worth of US energy. The details remain fluid. Trump has also signaled plans to impose a 100 percent tariff on semiconductor imports — a measure that could devastate Korea's flagship industry — though it is not yet clear whether Korean firms might win exemptions. Much of this will be settled in person, and the results will directly affect how much Korean companies can sell in their largest overseas market. Security concerns are equally pressing. The Seoul-Washington alliance, now 72 years old, faces a transformed geopolitical landscape. China's rise, North Korea's growing hostility and deepening Pyongyang-Moscow military ties all demand a strategic rethink. The alliance must expand its scope from deterring North Korean aggression to countering China's military presence in the wider region — an adjustment that would reshape the roles and capacities of both US and Korean forces. Another contentious topic will be defense cost-sharing: Trump has repeatedly demanded steep increases to the roughly 1.5 trillion won ($1.08 billion) South Korea currently pays to host 28,000 American troops. While these decisions will ultimately be driven by national interests and cold calculations, Trump's track record makes clear that personal rapport plays an outsized role in his foreign policy. Leaders he likes — Abe, and even Kim Jong-un — often find negotiations more fruitful. Those who lose his favor, such as former Canadian Prime Minister Justin Trudeau, can face protracted and bruising disputes. In that regard, Lee begins at a disadvantage. His earlier political career included sharp critiques of US foreign policy. He once described the US as an 'occupying force' responsible for Korea's post-liberation division, and during a meeting with a visiting US senator, he pointedly cited the 1905 Taft-Katsura Agreement as a Washington-endorsed prelude to Japanese colonization of Korea. The remark drew accusations of diplomatic impropriety. Since taking office, however, Lee has worked to shed his perceived anti-American image. He has repeatedly emphasized the centrality of the Seoul-Washington alliance to South Korea's security and, compared with some liberal predecessors — especially former President Moon Jae-in — he has sought closer ties with the US while maintaining greater distance from China. Relations with Japan, which had improved under Yoon after plunging to historic lows under Moon, have also been a priority for Lee to sustain. This shift might reflect his embrace of alliances and internationalism, but some of Lee's closest political allies carry their own history of anti-American activism. His first prime minister, Kim Min-seok, was once convicted for orchestrating a 1985 sit-in at the US cultural center in Seoul, wrongly believing the US had condoned the 1980 Gwangju crackdown. Ruling Democratic Party Chair Jung Chung-rae, a trusted Lee confidant, served four years in prison for his role in a 1989 raid on the US ambassador's residence in Seoul. Today, both men, like Lee, publicly affirm their commitment to the alliance, recognizing the decisive role the US plays in South Korea's trade and security. But their pasts may still color perceptions in Washington, particularly with a president like Trump, who often relies on instinctive judgments of personal loyalty. For Lee, then, the meeting will be about more than policy; it will be about optics, trust and chemistry. Trump is transactional, but also intensely personal. If he feels camaraderie with Lee, negotiations on tariffs, defense spending and military strategy could move more smoothly. If not, Korea may find itself facing tougher demands and fewer concessions.
Korea Herald
3 hours ago
- Korea Herald
[Editorial] A vision or a venture?
Lee charts sweeping 5-year policy plan, betting on bold reforms despite hurdles The Lee Jae Myung administration on Wednesday unveiled a sweeping five-year national governance blueprint, a document that blends bold reforms with cautious caveats. Presented by the State Affairs Planning Committee just 70 days into his presidency, the plan is framed by Lee not as a fixed policy, but as a 'set of proposals,' signaling a pragmatic approach in an era of economic uncertainty and geopolitical flux. The blueprint outlines 123 national tasks across five strategic objectives. Its execution would require an estimated 210 trillion won ($152 billion) in additional fiscal spending over five years, marking an unapologetically expansionary stance for a government facing demographic headwinds and a sluggish economy. One of its most contentious reforms is a proposed constitutional amendment to replace the single five-year presidential term with a four-year, two-term system, while also curbing presidential authority. The initiative seeks to address the concentration of executive power that has long fueled political instability, yet any amendment will require bipartisan consensus, a rare commodity in South Korean politics. The blueprint also targets institutional restructuring in law enforcement. It calls for the disbandment of the Supreme Prosecutors' Office by 2030, splitting its functions and abolishing the police bureau to bolster political neutrality and decentralize authority. Such reforms are bound to provoke fierce pushback from entrenched interests. Economic policy centers on a pivot toward next-generation industries, most notably artificial intelligence. The government aims to position South Korea as one of the world's top three AI powers by 2030, building an 'AI expressway' that integrates advanced computing infrastructure into industrial and public sectors. This technological push supports targets for 3 percent economic growth and the Kospi index reaching 5,000 points. The cultural sector receives equal emphasis. With a goal of expanding the Korean cultural industry to a 300 trillion won market and attracting 30 million inbound tourists annually by 2030, the plan includes 10 trillion won in policy financing to sustain the momentum of South Korea's global cultural influence. Social policy initiatives aim to fortify the safety net. Child allowances would be extended to all children under 13 by 2030, while out-of-pocket nursing care costs would be sharply reduced. These measures, targeting low birth rates and an aging society, are designed to preserve social cohesion amid economic transformation. National security policy sets an ambitious goal: regaining wartime operational control, or OPCON, from the United States within Lee's term, subject to readiness conditions agreed in 2014. While the administration sees this as an essential step toward self-reliance, US military officials have warned against any accelerated timetable that might compromise preparedness. Inter-Korean relations are poised for a shift from confrontation to dialogue, with a focus on restoring communication channels and fostering peaceful coexistence. Diplomatically, the government pledges a pragmatic, interest-driven approach: strengthening but evolving the US alliance, seeking forward-looking ties with Japan, deepening strategic engagement with China and managing relations with Russia constructively. The plan's breadth reflects an attempt to balance domestic reform with geopolitical agility. Yet its ambition is matched by the scale of the political and fiscal challenges it faces. Lee likens the spending to sowing seeds for future harvest, a metaphor that underscores both the optimism and the risk of this approach. Without disciplined governance and transparency, such vast outlays could become a liability rather than a legacy. Whether this blueprint becomes a turning point for South Korea will depend less on the audacity of its goals than on the administration's skill in pragmatic execution — forging consensus on divisive reforms, maintaining fiscal discipline and adapting to shifting global realities. The next five years will reveal whether this vision is the foundation of a more resilient nation or a bold venture that falters under its own weight.
Korea Herald
13 hours ago
- Korea Herald
Lee, Philippine president discuss economic cooperation in phone talks
President Lee Jae Myung spoke by phone with Philippine President Ferdinand Marcos Jr. on Thursday and discussed ways to expand cooperation in trade, infrastructure and shipbuilding, Lee's office said. In their first conversation since Lee took office in early June, the two leaders noted that South Korea has become the largest investor in, and the largest source of visitors to, the Philippines, and agreed to continue the momentum in brisk exchange and cooperation, presidential spokesperson Kang Yu-jung said in a written briefing. "The two leaders discussed expanding trade and investment based on the Korea-Philippines free trade agreement," Kang said. "They also discussed broadening the mutually beneficial cooperation, including Korean companies' participation in the Philippines' infrastructure projects, such as maritime bridges and railways, as well as the shipbuilding industry," she added. During the talks, Lee described the Philippines as a "long-standing ally" that was the first Asian nation to participate in the 1950-53 Korean War and sent the largest contingent among Asian countries, according to the office. Marcos expressed hope for closer cooperation to further advance the strategic partnership, which was elevated last year, it noted. (Yonhap)
