"AI Investment Will Be a Blessing" AI-Dedicated 300 Billion Won Fund Established... Existing Government Funds to Triple

[Financial News] "The supply of the 'Korea IT Fund (KIF)', which will be formed with a scale of over 300 billion won, will play a role like a blessing that revitalizes the previously contracted private investment in artificial intelligence (AI)."
Baekyung Hoon, Minister of Science and ICT, said this at the 'Government-Telecom AI Investment Cooperation Declaration Ceremony' held at the Westin Chosun Hotel in Jung-gu, Seoul on the afternoon of the 12th. The government and the three telecom companies will create a 300 billion won fund and expand investment in the AI sector.
This declaration ceremony was prepared on the occasion of the extension of the KIF, funded by SK Telecom, KT, and LG Uplus, from the existing 2030 to the end of 2040. Present at the site were Baekyung Hoon, Minister of Science and ICT, Yoo Young-sang, CEO of SKT, Kim Young-seop, CEO of KT, Lee Cheol-hoon, Vice President of LG Uplus, Song Jae-seong, Executive Vice President of the Korea Telecommunications Operators Association (KTOA), and Yoo Ji-sang, Chairman of the KIF Investment Management Committee.
KIF is a private mother fund created in 2002 by the three telecom companies with a total investment of 300 billion won, and has been forming and operating sub-funds to invest in venture and startup companies in the domestic information and communication technology (ICT) field. Until last year, it had invested a total of 4.7 trillion won in 1,669 ICT startups through 91 accumulated sub-funds.
This year, KIF plans to newly invest 150 billion won in the mother fund and raise more than 150 billion won by management companies to form sub-funds with a total scale of over 300 billion won. Of the funds collected over 300 billion won, more than 150 billion won will be used for AI and ICT companies, and 90 billion won will be invested in AI and AI transition startups. A 40 billion won investment will be made in AI semiconductor companies, and a 20 billion won fund will be allocated for ICT technology commercialization.
In his congratulatory speech, Minister Bae said, "President Lee Jae-myung has promised to create a 100 trillion won fund for future strategic industries, including AI," and "The government intends to newly supply policy funds of over 700 billion won this year, including AI innovation funds and cyber security and K-content media funds." In a prior conversation, Minister Bae also announced that the government would expand the AI innovation fund from the existing 90 billion won to 300 billion won and actively consider granting tax benefits when building data centers.
Park Jin-hyun, Secretary-General of KTOA, stated, "Over the next five years, KIF will invest 400 billion won to create a 2 trillion won AI fund." Yoo Young-sang, CEO of SK Telecom, said, "I feel great pride in being the largest investor in SK Telecom," and "We will not stop here but will realize a new growth vision for Korea by extending the KIF period and forming sub-funds in the AI field, which is a key strategy for national future development." After the event, a '2025 KIF Investment Explanation Session' was held for about 200 venture capitalists (VCs). Meanwhile, applications for the 2025 KIF sub-fund management companies (16 companies) will be accepted until the 28th. Detailed information can be found on the KTOA website.


psh@fnnews.com Park Seong-hyun, Reporter