"Determines national competitiveness"... Investors eye companies tied to 'sovereign AI' [How About This Fund?]

[Financial News] As artificial intelligence (AI) has emerged as critical infrastructure that determines national competitiveness beyond industrial competitiveness, the importance of sovereign AI is gaining attention. Hana Asset Management was the first domestic asset manager to launch an exchange-traded fund (ETF) centered on sovereign AI, focusing on gaining a first-mover advantage in the market.
According to the Korea Exchange (KRX) on the 20th, the net assets of ‘1Q K Sovereign AI’ stood at KRW 24 billion as of the 17th. The fund has more than tripled in size in just over a year, rising from KRW 7.2 billion when it was listed at the end of September last year.
It is the first domestic ETF to use ‘sovereign AI’ in its name. Sovereign AI refers to the development of independent AI technologies by a specific country or institution based on its own data, infrastructure, and workforce. Its importance is growing in fields such as defense, public services, and healthcare, where security and expertise are crucial.
Lee Gwang-hyun, an ETF management team manager at Hana Asset Management’s 1Q ETF Solutions Division, noted, "Sovereign AI is a key national strategy that simultaneously pursues technological and data-related self-reliance and global expansion. As a result, major regions such as Europe and Asia are expanding large-scale investments and policy support."
He added, "The Korean government is also stepping up its sovereign AI policy efforts, emphasizing that AI is not merely a technology service but critical infrastructure for national sovereignty and industrial competitiveness." He explained, "1Q K Sovereign AI selects and invests in leading Korean AI companies that are expected to see growth in sales and earnings, supported by the government’s strong policy backing."
Hana Asset Management selects holdings based on four areas: sovereign platforms, foundation models, AI data centers, and cybersecurity. In its latest regular rebalancing, it removed Kakao and Nota from the portfolio and added SK Telecom and AhnLab.
The ETF’s top holdings are SK Telecom (27.78%), Naver (27.40%), and Samsung SDS (14.65%), with the three companies accounting for nearly 70% of the portfolio. Other holdings include LG CNS at 5.75%, Hyundai AutoEver at 4.29%, AhnLab at 2.37%, Hancom at 2.01%, and NHN at 2.01%.
As sovereign AI policy is not something that can be pursued in the short term, the advice is to take a long-term view. Lee said, "Sovereign AI policy is a national project that requires a medium- to long-term commitment, from infrastructure to software capabilities." He added, "A strategic investment fund worth approximately KRW 20 trillion is scheduled to launch next year. After establishing an independent model, the plan is to build a multinational sovereign-AI interconnection network by 2030 and expand into models for overseas export."
He emphasized, "Sovereign AI is a necessity, not an option. Korea already has a strong foundation, ranging from memory semiconductors to telecommunications infrastructure and cloud services." He continued, "If Korea develops its own independent and competitive sovereign AI through policy support based on this foundation, domestic companies are expected to gain global competitiveness."
[email protected] Seo Min-ji Reporter