Korea Plans to Inject Over $700 Million into Sovereign Wealth Fund Targeting Strategic Industries Like AI Next Year

Odaily News –闵庚卨 (Min Kyung-seol), head of the Innovation Growth Division at South Korea's Ministry of Economy and Finance, said on Tuesday that the country expects to deploy between 600 billion and 1 trillion Korean won (approximately $707 million) in new funds next year into a new sovereign wealth fund targeting strategic industries such as AI. The final investment amount could exceed initial expectations, depending on which targets are identified and their capital needs. Min noted that there are currently no plans for the fund to directly invest in Samsung Electronics and SK Hynix.

In July this year, the South Korean government announced the creation of a new "Strategic Industry Investment Account" under the Korea Investment Corporation (KIC), with initial capital of at least 20 trillion Korean won (approximately 94 billion RMB). Investment targets include AI, semiconductors, data centers, and core companies in overseas supply chains. The "Korean version of a sovereign wealth fund" is scheduled to be formally established and operational next year. Min said the fund will also target infrastructure such as robotics, energy, batteries, and power grids, with nuclear energy, space, and quantum technology also under consideration. (Jin Shi)