The Republic of Korea’s sovereign wealth fund plans to ramp up investments in Silicon Valley startups in AI and metaverse sectors to raise the share of alternative assets in its portfolio. Bloomberg reports.
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According to the publication, the CEO of the $200 billion Korea Investment Corp (KIC), Sonko Jin, is also weighing hotel investments in the wake of a global rebound from the pandemic.
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Appointed in mid-2021, Jin said he is not troubled by the recent slump in technology stocks and the risks of higher interest rates Fed in the United States. By 2025, he aims to raise the share of alternative assets in KIC’s portfolio to 25%, from roughly 17% last year. The fund’s total assets are expected to reach $300 billion.
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“Some say Silicon Valley is already saturated with investments, which, to be fair, is partly true. But it remains a source of global growth. There are still many good opportunities if you search for them carefully,” Jin said.
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To reach its stated targets, the corporation plans to grow the San Francisco office staff to study investments in technology, health care, and green projects. The head of KIC did not disclose details of any potential investments.
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Earlier, Grayscale Investments experts forecast growth in annual revenue of the metaverse sector to $1 trillion in the near term.