Koo Yun-cheol: "We will establish a 20 trillion won sovereign wealth fund at KIC and share investment returns with the public"

[Financial News]  Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol said on the 31st that the government would create a strategic investment account at Korea Investment Corporation (KIC) and expand it into a comprehensive sovereign wealth fund with more than 20 trillion won in initial capital.
On the 31st, Koo chaired the Emergency Economic Headquarters Meeting, the Council of Economic Ministers, and the Task Force of Related Ministers for Special Management of Consumer Prices at the Government Complex Seoul. He said, "The investment returns from the sovereign wealth fund will be shared with all citizens through government dividends and other measures."
The initial capital for the strategic sovereign wealth fund will be raised to more than 20 trillion won through contributions such as shares in public institutions held by the government and in-kind contributions of shares. The government aims to use the fund to provide long-term patient capital for strategic industries in Korea.
It will focus on investments that strengthen national competitiveness and economic security, including strategic industry infrastructure and companies in overseas supply chains. Investment returns will be shared with all citizens through government dividends and other channels.
As an anchor investor, the government plans to attract follow-on co-investment from overseas sovereign wealth funds and others, while improving investment efficiency through joint investments with policy funds and a "relay investment" model, in which the sovereign wealth fund acquires stakes in promising companies after policy funds are wound down.
The government plans to submit a revision to the Korea Investment Corporation Act next month and aims to secure National Assembly approval within the year.

[email protected] Jung Sang-gyun Reporter