South Korea Plans 20 Trillion Won Sovereign Wealth Fund Injection for AI Investment
South Korea plans to inject 20 trillion won, or about $13.9 billion, into its sovereign wealth fund for strategic investments in artificial intelligence, data centers and infrastructure. After a sharp selloff in tech stocks, the fund’s investment mandate was broadened for the first time to allow allocations to domestic assets. A government announcement on Friday said Seoul will establish a dedicated account inside Korea Investment Corp. The account will have initial funding of at least 20 trillion won, with capital coming from equity contributions by policy banks and other public institutions. The announcement did not directly link the plan to current market turbulence, but it came after South Korean stocks fell sharply this week, and the government has recently unveiled a series of measures aimed at stabilizing the market.