Definitely, the metaverse and artificial intelligence (AI) are of great interest to South Korea. The country announced at the end of January a program of investment of 48.5 billion dollars in digital where these two sectors play a central role. Bloomberg reveals today that the South Korean sovereign wealth fund was going to put its hand in its pocket by increasing its investments in Silicon Valley.
The new leader of the sovereign wealth fund leaves its mark
The current period is not the rosiest for the Tech sector. Technology stocks are in decline and the increase in the interest rate desired by the American Federal Reserve will not improve the situation.
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However, for Seoungho Jin, appointed head of the Korea Investment Corp (KIC) in mid-2021, even if he recognizes that he is ” partly true “than Silicon Valley” is already full “, she remains according to him” a source of global growth “.
South Korea’s sovereign wealth fund is worth 200 billion dollars. It was created in 2005 to increase the wealth of the country and provide it with financial assets abroad and only abroad. The goal is to avoid the peninsula having to apply for a loan from the International Monetary Fund, as in 1997.
KIC’s investments are many and varied. His new boss, who worked for the Ministry of Finance and the Presidential Committee for Balanced National Development, intends to perpetuate traditional investments, in real estate, hotels, for example, by leaving more room for so-called alternative assets, i.e. i.e. technological.
South Korea sees far
Seoungho Jin wants 25% of KIC’s portfolio in 2025 to go to the tech sector, then it will be worth an estimated $300 billion. This share was 17% in 2021. The new boss of the South Korea fund told Bloomberg“ We are in the transition from childhood to adulthood “.
While the metaverse and AI are of particular interest to the KIC, health or environmental technologies are also mentioned as worthy of interest by Seoungho Jin. Silicon Valley assets will be closely watched thanks to an increase in the sovereign wealth fund’s staff at its San Francisco offices.
South Korea, birthplace of Samsung, LG or Hyundai, has decided to invest massively inside and outside its borders in what looks like a digital sovereignty plan for the future.