South Korea's sovereign wealth fund joins the tech race, targeting AI, robotics, and other strategic industries with trillions of Korean won

According to Golden Ten Data APP, it is reported that South Korea plans to inject more than 1 trillion won (about $707 million) into a newly established sovereign wealth fund next year, focusing on artificial intelligence (AI) and other strategic industries. This move aligns with the global trend of governments mobilizing investment to seize opportunities in high-tech fields.

Min Kyung-seol, South Korea's Vice Minister for Innovation and Growth at the Ministry of Finance, stated on Tuesday: "The specifics are not convenient to disclose, but next year's investment scale may be between 600 billion and 1 trillion won." He added that the final investment amount might exceed initial estimates, depending on targeted objectives and funding needs. He also clarified that, at present, the fund has no plans to directly invest in Samsung Electronics or SK Hynix—two chip manufacturers that have become key pillars of the global AI boom.

The new fund targets areas such as AI, robotics, and energy, focusing on post-Series B enterprises

Last month, South Korea announced it would inject 20 trillion won into Korea Investment Corporation (KIC) for investments in artificial intelligence, data centers, and infrastructure. Min stated that this newly established fund will grant KIC independent strategic investment authority, distinct from its traditional foreign exchange reserve management roles.

He also noted that the fund will target sectors such as robotics, energy, batteries, and grid infrastructure. Nuclear power, space, and quantum technology are also under consideration.

In terms of investment strategy, the new fund will focus on companies that have passed the early-stage startup phase, especially those with mature business models entering Series B and subsequent funding rounds. Additionally, when other investors seek to exit, the fund may acquire stakes in companies or projects; Min calls this strategy “relay investment.”

As of last year-end, KIC managed assets totaling $232 billion. Min stated that the new fund will operate separately from traditional fund management activities and will have independent investment strategies and objectives. He added that, unlike KIC's current foreign exchange reserve fund—whose investments are limited to overseas assets—the new fund will conduct long-term direct equity investments both domestically and internationally.

Global sovereign funds are “scrambling” for AI assets, and South Korea aims to be a “guide”

This move by South Korea comes as global sovereign wealth funds accelerate their push toward AI-related assets. The Abu Dhabi Mubadala Investment Company is reportedly considering spending 1 trillion yen (about $6.3 billion) to build data centers in Japan, while Singapore's Temasek Holdings intends to participate in pre-IPO financing for Shenzhen optical connectivity supplier Aetetek.

Amid the global rush of sovereign wealth funds to pursue AI assets, South Korea has chosen a pragmatic yet ambitious approach: not an early-stage risk-taker, but a “relay runner” in mature tracks and a “guide” for global capital.

Min reported that sovereign wealth funds and pension fund investors from the Middle East, Europe, and North America have already approached the South Korean government to discuss potential investments in South Korea and possibilities for joint investments with the new fund. He did not disclose the identities of specific investors, saying discussions are still at an early stage.

He also said: “All kinds of public funds are indeed operating, and we are actively exploring ways to establish a unique position for this fund.”

For overseas investments, Min stated the fund would target key minerals, resources, and other assets that help strengthen South Korea's strategic supply chain, and could cooperate with domestic funds and professional investors on relevant investments.

Min said the government will set overall strategic priorities through a fund operating committee, while KIC's board and investment committee will handle specific investment and allocation decisions. He stated the government will not intervene in individual transactions.

“We are working to establish a sovereign wealth fund as an anchor investor, to help attract investments to South Korea and co-invest with leading global investors,” Min said.