The government said Sunday it will kick off a 30 trillion won ($27.4 billion) investment promotion program this month that aims to get companies to pour more money into new growth engines, build up core businesses and engage in large social overhead capital projects.

The inter-ministerial program supported by the finance, commerce and science ministries and the Financial Services Commission calls for the state-run Korea Development Bank to provide some 15 trillion won in capital that can be used to buy up shares and project-specific bonds.

The KDB sum will be matched by roughly the same amount of money coming from private companies.

This arrangement reduced risks for companies since injection of funds will be in the form of investments and not loans.

"Small and medium enterprises and large businesses can all take advantage of the program to push forward various projects," the finance ministry said in a press release.

Investment can be made in future growth industries, such as medicine, tourism, software, logistics and contents, while core businesses, such as semiconductors, autos, shipbuilding, machinery, steel and petrochemicals, can also benefit from the program. Large SOC and construction projects can apply for the fund support as well.

The ministry added that research and development and mergers and acquisition deals that aim to streamline business operations and improve corporate efficiency are eligible to get support from the KDB.

It said companies have already requested 5 trillion won worth of funds from the lender, even before the program goes into effect Monday.

At present, local chemical and industrial materials manufacturer Hyosung plans to avail itself of the program so it can invest 1 trillion won in a new polyketone plant.

Polyketone is a high-performance thermoplastic polymer that is eco-friendly to make. The material developed by Hyosung can be used extensively in automotive electrical and electronic components, and packaging materials.

The ministry added that Kumho Industrial Co. that is engaged in a 700 billion won highway construction project has requested support. (Yonhap)