Summary:
Korea Investment Corp. (KIC) plans to boost investments in AI startups and venture capital funds, aiming for long-term growth in disruptive technologies
Focus on the entire AI value chain, including public markets, data centers, and energy infrastructure
US remains KIC’s most significant market, with major holdings in tech giants like Nvidia and Microsoft
KIC is exploring opportunities in China’s tech sector, despite geopolitical and macroeconomic challenges
Under new leadership, KIC seeks to enhance performance, addressing criticisms of lagging behind peers like Norway’s sovereign wealth fund
South Korea’s sovereign wealth fund, Korea Investment Corp. (KIC), is set to increase its investments in tech startups and venture capital funds, focusing on artificial intelligence (AI) and other disruptive technologies. With $206.5 billion in assets under management, KIC aims to enhance returns by expanding its allocation to alternative assets, including exploring tech investment opportunities in China.
Strategic Focus on AI and Tech
KIC is not just stopping at private markets; it's also ramping up bets on AI and tech companies in public markets, exploring opportunities across the entire AI value chain. This includes everything from data centers and energy infrastructure to core technologies and applications.
Long-Term Growth Over Short-Term Volatility
CEO Park Il Young emphasizes a long-term growth strategy, focusing on structural trends rather than short-term market fluctuations. "We expect US market strength to continue, especially in the tech sector," Park stated, highlighting the fund's significant exposure to the US, where two-thirds of its public equity portfolio is invested.
Performance and Peer Comparison
Under Park's leadership since September, KIC is striving to improve its performance, which has been criticized for lagging behind peers like Norway’s sovereign wealth fund, which posted a 13% return last year compared to KIC’s 8.49%.
Venture Capital and Startup Ecosystem
KIC’s commitment to early-stage innovation is evident, with a strong network in Silicon Valley through its San Francisco office. Park’s previous experience in supporting Korea’s startup ecosystem has shaped his investment outlook, particularly in platform startups and AI.
China’s Tech Sector: A Promising Yet Challenging Frontier
Park views China’s technology sector as "promising" but acknowledges the challenges due to US-China rivalry and macroeconomic uncertainties. KIC is considering a more active investment approach in China, beyond passive benchmark tracking.
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