The South Korean government plans to establish a new sovereign wealth fund by the first half of 2026 to strengthen long-term national asset management and support strategic industries. The plan was announced by Deputy Prime Minister and Finance Minister Koo Yun-cheol during a policy briefing under President Lee Jae-myung. The new fund will be modeled after global examples such as Singapore’s Temasek Holdings and Australia’s Future Fund, with a mandate to pursue a more comprehensive and strategic investment approach. While the Korea Investment Corporation (KIC) currently manages about $230 billion, its role is limited to overseas investments because it is funded mainly by foreign-exchange reserves. Unlike KIC, the planned sovereign wealth fund will be able to invest domestically, focusing on future-oriented sectors such as semiconductors, artificial intelligence, and robotics. Officials pointed to Temasek, which allocates more than half of its portfolio to domestic companies, as a key reference. The briefing also addressed potential tax reforms, including a proposal to allow inheritance tax payments using listed stocks, expanding beyond the current system that permits only unlisted shares. In addition, the government revised its 2026 economic outlook, shifting from a 1.8 percent growth forecast to a “plus-alpha” growth strategy supported by expansionary fiscal policies. President Lee emphasized that sustained fiscal stimulus may be necessary amid ongoing economic challenges (ICE SEOUL)

Fonte notizia: Maeil Business News Korea