KOREA PLANS TO INVEST OVER $700 MILLION IN STRATEGIC INDUSTRY SOVEREIGN WEALTH FUNDS LIKE AI NEXT YEAR

ON TUESDAY, THE CHIEF OF THE INNOVATION GROWTH UNIT OF KOREA’S TREASURY STATED THAT SOUTH KOREA WAS EXPECTED TO DEPLOY BETWEEN 600 BILLION AND 1 TRILLION WON (APPROXIMATELY $707 MILLION) OF NEW FUNDING NEXT YEAR TO A NEW SOVEREIGN WEALTH FUND TARGETING STRATEGIC INDUSTRIES SUCH AS AI, WITH THE FINAL INVESTMENT LIKELY TO EXCEED INITIAL EXPECTATIONS, DEPENDING ON THE TARGETS IDENTIFIED AND THEIR FUNDING NEEDS. IT STATES THAT THERE ARE CURRENTLY NO PLANS FOR THE FUND TO INVEST DIRECTLY IN TRISTAR ELECTRONICS AND SK HERCULES. IN JULY THIS YEAR, THE KOREAN GOVERNMENT ANNOUNCED THE ESTABLISHMENT OF A NEW STRATEGIC INDUSTRY INVESTMENT ACCOUNT UNDER THE UMBRELLA OF THE KOREA INVESTMENT SOCIETY (KIC), WITH AN INITIAL FUNDING OF AT LEAST 20 TRILLION WON (APPROXIMATELY 94 BILLION YUAN RMB) FOR INVESTMENTS SUCH AS AI, SEMICONDUCTORS, DATA CENTRES AND CORE COMPANIES IN THE OVERSEAS SUPPLY CHAIN, AND PLANS TO FORMALLY ESTABLISH AND OPERATE THE KOREA SOVEREIGN WEALTH FUND NEXT YEAR. THE FUND WILL ALSO TARGET INFRASTRUCTURE SUCH AS ROBOTICS, ENERGY AND BATTERIES, AND ELECTRICITY GRIDS, AND NUCLEAR, SPACE AND QUANTUM TECHNOLOGIES ARE ALSO CONSIDERED。