South Korea Launches 20 Trillion Won Sovereign Wealth Fund and Strategic Export Finance Fund
South Korea's government has established a Korean-style sovereign wealth fund with an initial scale of 20 trillion won (approximately $13.8 billion) aimed at creating national wealth. This fund, modeled after Singapore's Temasek and Australia's Future Fund, will be funded through government equity investments and in-kind contributions.
The government plans to maintain over 50% stake in invested public institutions to address privatization concerns. Additionally, a Strategic Export Finance Fund will support large-scale projects in sectors like defense and nuclear power, with resources from government contributions and beneficiary companies.
The government intends to expand investment through profits from equity investments and aims for profit maximization, similar to Temasek's approach. Country-specific strategies will be developed for sectors like AI, defense, and infrastructure, with an APEC Startup Alliance planned for launch within the first half of the year.
