The new Korea Investment Corporation vehicle will target sectors tied to competitiveness and economic security, including nuclear energy, aerospace, finance, infrastructure and overseas supply chains.
South Korea has abandoned plans for an independent sovereign wealth fund modeled on Singapore’s Temasek Holdings and Australia’s Future Fund, choosing instead to create a strategic investment account within Korea Investment Corporation. The account is intended to invest at home and abroad in areas the government sees as central to national competitiveness and economic security, including nuclear energy, aerospace, finance, infrastructure and overseas supply chains. The shift suggests Seoul is favoring a structure housed inside its existing state investment framework rather than launching a separate standalone fund.