South Korea expects to deploy between 600 billion won (US$426 million) and 1 trillion won (about US$710 million) into a new sovereign wealth fund next year.

The fund will back AI and other strategic sectors through Korea Investment Corp (KIC).

Deputy Finance Minister for Innovation and Growth Min Kyung-seol said the vehicle would make long-term direct equity investments at home and abroad, targeting AI, data centers, robotics, energy, batteries, and infrastructure such as power grids.

Nuclear power, space, and quantum technology are also under consideration.

The plan would mark a shift for KIC, which was created to manage state funds in international financial assets and managed about US$232 billion at the end of last year.

Under current law, KIC manages entrusted assets outside Korea in foreign currencies, suggesting that a large domestic strategic investment program would likely require legal, budget, or trust-contract changes before launch.

🔗 Source: Bloomberg