South Korea’s Korea Investment Corp (KIC) plans to boost its investments in tech startups and venture capital funds to expand its exposure to AI and emerging technologies.

KIC CEO Park Il Young said the fund is focusing on long-term growth by increasing allocations to alternatives like private equity and AI-related infrastructure.

The fund’s public equity portfolio is concentrated in the US, with about two-thirds of its assets invested there

Significant holdings include stakes worth US$3.1 billion in Nvidia and US$2.7 billion in Microsoft.

KIC also operates a San Francisco office to support its initiatives in the startup sector.

Although its startup exposure is currently small, KIC aims to tap into early-stage innovation as it works to improve returns under Park’s leadership.

KIC is also exploring opportunities in China’s tech sector despite geopolitical risks, as it continues shifting toward innovation-led investment strategies.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Sovereign wealth funds join the global AI investment race amid record capital flows

KIC’s strategic shift toward tech startups and VC funds aligns with broader institutional investment trends in AI technology, which has reached unprecedented levels globally.

In 2024 alone, global AI investment reached $252.3 billion, representing a 25.5% increase from the previous year, with private equity and venture capital playing increasingly significant roles 1.

The U.S. leads this investment surge with $109.1 billion in private AI investment, while KIC’s move to deepen AI exposure parallels the actions of other institutional investors seeking to capitalize on generative AI’s growth, which attracted $33.9 billion globally 2.

This investment momentum is backed by real-world adoption, with a McKinsey survey revealing that 78% of organizations now use AI in at least one business function, indicating that KIC’s strategic pivot is grounded in tangible business transformation rather than speculative technology hype 3.

2️⃣ Navigating US-China tech competition requires strategic portfolio allocation

KIC’s dual approach, maintaining significant U.S. exposure while exploring Chinese tech opportunities, reflects the complex geopolitical landscape that sovereign investors must navigate in 2025.