South Korea launches 20 trillion-won strategic fund

The South Korean government announced on Friday, July 31, 2026, the creation of a major strategic investment fund worth at least 20 trillion won (approximately $13.6 billion) to provide long-term capital for industries deemed vital to national security and economic growth. The fund, which is expected to begin operations in 2027, will be established as a separate account within the state-run Korea Investment Corporation (KIC), marking a significant expansion of the sovereign wealth fund's mandate to include domestic investments for the first time.

Deputy Prime Minister and Finance and Economy Minister Koo Yun-cheol announced the plan during an emergency economic meeting in Seoul. Officials said the initiative is designed to proactively respond to growing global investment interest in South Korea's technology sector, particularly in building an artificial intelligence ecosystem. The government intends for the fund to serve as a domestic anchor investor, aiming to attract additional capital from foreign sovereign wealth funds, pension funds, and global asset managers by reducing perceived risk and providing a trusted local partner.

Initial capital for the fund will be sourced from...