South Korea to channel sovereign wealth fund into long-term digital infrastructure
South Korea plans to use its upcoming sovereign wealth fund to provide patient capital for digital infrastructure projects, senior finance official Huh Chang said at the APEC meeting.
During the APEC Finance Ministers' Meeting in Hong Kong, South Korea's second vice finance minister Huh Chang announced that the nation will channel patient capital into digital infrastructure through a sovereign wealth fund expected to start in 2027. The fund will focus on long-term investments that do not demand immediate returns and will serve as an anchor to attract additional private and foreign investment. Huh highlighted the role of public financing in supporting future growth sectors and held bilateral talks with officials from New Zealand, Canada, and Beijing on AI, supply-chain cooperation, and geopolitical risk management.
He also discussed economic ties with the OECD secretary-general Mathias Cormann and AIIB president Zou Jiayi, emphasizing South Korea's robust recovery and projected 3 percent growth. The initiative aims to bolster the country's strategic industries and position it as a hub for digital development.
Why it matters
The fund could shape South Korea's digital future and draw significant foreign investment into its tech sector.
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