South Korea Launches 20 Trillion Won Fund for AI Chips and Robotics

TLDR

• South Korea launches a 20 trillion won fund for AI, chips and robotics growth

• KIC gains authority to invest in domestic strategic industries starting in 2027

• State-held bank shares will provide most of the new fund’s starting capital

• The fund will target AI, semiconductors, defense, robotics and biotechnology

• Officials expect the vehicle to draw more foreign capital into Korean technology

South Korea will launch a 20 trillion won investment account for artificial intelligence, chips, robotics, defense, and biotechnology. The government will place the account inside the Korea Investment Corporation and permit domestic investments for the first time. Officials want the fund to strengthen economic security, attract foreign capital, and support strategic companies over several decades.

KIC Mandate Expands Into Domestic Markets

South Korea plans to provide about 16 trillion won through shares in major state-run financial institutions. These institutions include Korea Development Bank, Export-Import Bank of Korea, and Industrial Bank of Korea. The state will add about 4 trillion won using shares transferred through inheritance and gift tax payments.

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