South Korea to Inject $707M into Sovereign Wealth Fund for Strategic Industries Next Year

Seoul allocates 600B-1T won to KIC-led fund targeting AI, semiconductors, and robotics. Direct stakes in Samsung and SK Hynix are excluded from the investment mandate.

Woofun AI reports that South Korea plans to allocate between 600 billion and 1 trillion won (approximately $707 million) to a new sovereign wealth fund focused on strategic industries next year. Min Gyeong-seok, head of the Innovation and Growth Office at the Ministry of Finance, confirmed the allocation, noting the final amount may exceed initial expectations based on target selection. The fund, established under Korea Investment Corporation (KIC) as the 'Strategic Industry Investment Account,' will not invest directly in Samsung Electronics or SK Hynix.

The initiative aims to operate a domestic sovereign wealth fund by next year, with an initial capital base of at least 20 trillion won announced in July. Investment targets include AI, semiconductors, data centers, overseas supply chain entities, robotics, energy, batteries, and power grid infrastructure. Nuclear energy, space technology, and quantum technology are also under consideration for inclusion.