South Korea plans to invest up to ₩1 trillion in the Sovereign Wealth Fund for Strategic Industries such as AI next year.

August 12th - The head of the South Korean Ministry of Economy and Finance's Growth Office, Min Gyeong-sik, said it is expected that South Korea will allocate new funds ranging from 600 billion to 1 trillion Korean won (approximately $0.707 billion) to a new sovereign wealth fund aimed at strategic industries such as AI next year. The final investment amount may exceed the initial estimate, depending on which targets are identified and their funding needs.

Min Gyeong-sik stated that there is currently no plan for the fund to directly invest in Samsung Electronics and SK Hynix. In July of this year, the South Korean government announced the establishment of a new "Strategic Industry Investment Account" under the Korea Investment Corporation (KIC), with initial funding of at least over 20 trillion Korean won (approximately RMB 940 billion). The investment targets include AI, semiconductors, data centers, and core overseas supply chain companies. The plan is to formally establish and operate the "South Korean version of a sovereign wealth fund" next year. The fund will also target infrastructure such as robotics, energy, batteries, and the power grid, with nuclear energy, space, and quantum technology also under consideration.