Seoul eyes long-term digital infrastructure projects via sovereign wealth fund
Summary
Second Vice Finance Minister Huh Chang said at the APEC Finance Ministers’ Meeting in Hong Kong from Tuesday to Wednesday that Korea plans to use its planned sovereign wealth fund to provide patient capital for long-term digital infrastructure projects. He said the fund would also act as an anchor investor to attract global and private investment. Huh discussed AI industry ties and geopolitical risks with New Zealand, supply chain cooperation with Canada, and economic and financial ties with China. He also discussed infrastructure investment cooperation with the president of the Asian Infrastructure Investment Bank.
Key Facts
- Korea unveiled plans earlier this year to launch the new sovereign wealth fund in 2027 for continuous investment in cutting-edge and strategic industries.
- Huh said public funding and the mobilization of private capital are important for major projects in future growth industries.
- Korea and Canada shared policy directions for their respective strategic sovereign wealth funds and discussed ways to strengthen supply chain cooperation.
- Huh told OECD Secretary-General Mathias Cormann that Korea was maintaining a robust economic recovery, with growth projected in the 3 percent range.
- Huh met with Asian Infrastructure Investment Bank President Zou Jiayi to discuss cooperation on infrastructure investment projects.
The sign of the Ministry of Finance and Economy in the central city of Sejong / Yonhap
SEJONG — Korea plans to provide patient capital for long-term digital infrastructure projects through the country's planned sovereign wealth fund, the second vice finance minister has said.
Second Vice Finance Minister Huh Chang outlined the plan during the Asia-Pacific Economic Cooperation (APEC) Finance Ministers' Meeting held in Hong Kong from Tuesday to Wednesday, according to the Ministry of Finance and Economy.
Huh's remarks came after Korea unveiled plans earlier this year to launch a new sovereign wealth fund in 2027 to make continuous investments in cutting-edge and strategic industries.
During one of the sessions at the finance ministerial meeting, Huh highlighted the importance of public funding and the mobilization of private capital in pursuing major projects in future growth industries.
The senior policymaker said that the country plans to provide long-term patient capital, which refers to investment that does not require immediate returns, for digital infrastructure projects through the sovereign wealth fund.
The new fund will also serve as an anchor investor to attract additional investment from global and private investors, he added.
On the sidelines of the event, Huh held bilateral meetings with major partners and global organizations, the finance ministry said.
In particular, Huh discussed ways to bolster ties in the artificial intelligence (AI) industry and jointly address geopolitical risks with New Zealand.
Korea and Canada shared policy directions on their respective strategic sovereign wealth funds, along with ways to bolster supply chain cooperation, the ministry said.
Seoul and Beijing discussed ways to bolster economic and financial ties through multilateral platforms, including APEC and the Group of 20 (G20).
During his meeting with Mathias Cormann, secretary-general of the Organization for Economic Cooperation and Development (OECD), Huh highlighted that Korea is maintaining a robust economic recovery, with growth projected in the 3 percent range.
Huh additionally met with Zou Jiayi, president of the Asian Infrastructure Investment Bank (AIIB), to discuss ways to bolster cooperation in infrastructure investment projects.
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