South Korea unveils $14B fund for AI and tech investments

South Korea will launch a $14B sovereign wealth fund in 2027 to invest in AI, data centers, and strategic industries, shifting focus to domestic investments and boosting economic security.

South Korea plans to launch a new sovereign wealth fund with a budget of at least 20 trillion won ($14 billion) to invest in artificial intelligence, data centers, and other strategic industries. This fund, managed by the Korea Investment Corporation, will for the first time allow domestic investments, marking a significant shift from its traditional focus on overseas assets. State-run lenders will provide most of the capital, while additional funding will come from shares accepted as inheritance and gift tax payments. The initiative aims to expand South Korea's AI infrastructure, support long-term returns, and strengthen national economic security. Legal amendments are expected to be submitted to the National Assembly in August, with fund operations set to begin in 2027. This move aligns with global trends in AI infrastructure spending and positions South Korea to leverage its strengths in AI hardware while addressing gaps in domestic computing capacity.