South Korea’s Sovereign Wealth Fund Plans to Boost AI and Metaverse Investments

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South Korea's Sovereign Wealth Fund Plans to Boost AI and Metaverse Investments
South Korea's Sovereign Wealth Fund Plans to Boost AI and Metaverse Investments

South Korea’s crypto market first surged in late 2017, when Bitcoin trading skyrocketed in popularity among ordinary citizens of all ages who looked to cash in on the digital currency’s rising price. The country became the world’s third-largest trading market behind the U.S. and Japan at the time. With the high rise in Metaverse adoption, investment firms are planning on boosting investment. 

South Korea’s Sovereign Wealth Fund Outline Plans to Increase Investment

According to an announcement on February 11, South Korea’s sovereign wealth fund has outlined plans to increase investment in Silicon Valley startups to increase exposure to the metaverse, artificial intelligence and alternative assets.

Korea Investment Corporation (KIC), head of the $200 billion funds, stated that it was considering the recent slump in tech stocks and the risk of a rate hike by the Federal Reserve.

CEO Seoungho Jin told South Korean media that some believe Silicon Valley is “saturated” but remains a source of global growth.

He added that alternative investments could make up 25% of the KIC portfolio by 2025, increasing the fund’s exposure from around 17% last year.

The fund’s allocation to alternative investments, including private equity and hedge funds, will increase by about 2 percentage points in 2022, according to the Bloomberg report.

Assets under management will eventually grow to $300 billion.

In May last year, Jin Heenam replaced Choiat at the helm of the fund, which has nearly doubled in size over the past five years. Previously, he spent most of his career at the Treasury Department, which owns 100% of KIC.