South Korea has approved new sovereign fund account for AI and strategic sectors

South Korea has approved plans to establish a new 20 trillion won investment account within its sovereign wealth fund to finance artificial intelligence, data centers and other strategic industries while allowing domestic investments for the first time. Summary South Korea approved a 20 trillion won sovereign investment account focused on AI, data centers and strategic industries. The new Korea Investment Corporation account will be allowed to invest in domestic assets for the first time. The government plans to submit legal amendments in August and expects the fund to begin operations in 2027. The announcement follows recent efforts to attract global technology investors and expand AI-related investment initiatives. According to a South Korean government statement released Friday, the new account will be created under the Korea Investment Corporation (KIC), expanding the sovereign wealth fund’s mandate beyond overseas assets. The government said the account will begin with at least 20 trillion won in capital, funded through equity contributions from public institutions, including policy banks. Unlike KIC’s existing portfolio, which primarily manages foreign assets, the new account...