South Korea expects to allocate 1 trillion won ($707 million) in new capital next year to a sovereign wealth fund targeting strategic industries like artificial intelligence, joining a global race among governments to mobilize investments and secure a foothold in advanced technology sectors.
"It's difficult to provide specific details now, but the investment amount for next year could range from 600 billion to over 1 trillion won," said Min Kyung-seol, South Korea's Vice Finance Minister for innovation and growth, in an interview with media on Tuesday. He noted that the final investment figure might exceed initial projections, depending on the targets identified and their capital needs.
Min stated there are currently no plans for the fund to directly invest in Samsung Electronics and SK Hynix. These two South Korean chipmakers have become key pillars of the global AI boom. The South Korean government announced last month that it would inject 20 trillion won ($13.9 billion) into the Korea Investment Corporation to invest in AI, data centers, and infrastructure.
Min indicated that the new fund would add a dedicated strategic investment role beyond the corporation's traditional management of foreign exchange reserves. He said the fund would also target robotics, energy, batteries, and infrastructure such as power grids. Nuclear energy, space, and quantum technology are also under consideration.
According to Min, sovereign wealth funds and pension fund investors from the Middle East, Europe, and North America have already approached the South Korean government to discuss investing in the country and co-investing with the new fund. He declined to identify specific investors, citing that the discussions are still in early stages.
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