Signal Korea plans 20-trillion-won sovereign wealth fund to invest directly in AI and semiconductors

Summary

The South Korean government announced plans to establish a 'strategic sovereign wealth fund' with roughly 20 trillion won in initial capital, intended for long-term investment in national strategic industries including AI, semiconductors and biotechnology. The plan involves creating a new strategic investment account within the Korea Investment Corporation (KIC). This represents a shift beyond KIC's traditional focus on overseas financial investment toward supplying direct patient capital to domestic strategic industries and strengthening economic security. The fund is envisioned to also act as an anchor investor co-investing alongside other global sovereign wealth funds. The government aims to have the fund operational next year and plans to introduce an amendment to the Korea Investment Corporation Act in August.