South Korea’s $200 billion sovereign wealth fund plans to boost investments in Silicon Valley startups as it looks to the metaverse and artificial-intelligence to accelerate its expansion in alternative assets.
Jin is looking beyond the recent downturn in listed technology stocks and the wider risks to the sector this year from the Federal Reserve driving interest rates higher. He sees alternative assets accounting for about 25% of KIC’s portfolio by 2025, versus around 17% last year, and assets under management eventually rising to $300 billion.
He also sees KIC as providing South Korea with an economic buffer to ensure it never repeats the events of 1997, when it was forced to seek a loan from the International Monetary Fund. Underscoring this point, Jin noted that the $20 billion gain KIC made in 2020 was bigger than the emergency loan.
Read more: Money Web
