Kim Taenyeon: "KIC Should Be Able to Invest Directly in Domestic Strategic Industries and Innovative Technologies"

"Move Beyond Defensive, Foreign Exchange-Centered Management"
A Virtuous Fiscal Cycle Must Be Established

Kim Taenyeon, a member of the Democratic Party of Korea, argued on October 27 that the Korea Investment Corporation (KIC) should be restructured to allow direct investment in domestic strategic industries and innovative technologies.

During a National Assembly Strategy and Finance Committee audit on the same day, Assemblyman Kim stated, "KIC should move beyond the framework of a foreign currency asset management institution and transform into a strategic sovereign wealth fund that manages the nation's growth industries and future assets."

Kim Taenyeon, Chairman of the Economic Crisis Response Special Committee of the Democratic Party of Korea, attended and gave a congratulatory speech at the seminar "In the Era of Economic Security, What Is the Solution to Overcoming the Crisis?" hosted by the Economic Crisis Response Special Committee held at the National Assembly Members' Office Building on the 21st. Photo by Yoon Dongju doso7@

Currently, KIC can only receive entrusted assets from the government, the Bank of Korea, and fund management entities, which significantly limits its ability to expand its assets under management. As a result, even when Korean companies enter overseas markets, KIC's participation is limited to simple financial co-investment. Regarding this, Assemblyman Kim pointed out, "Major sovereign wealth funds around the world are already investing in their own industries and innovative companies, serving as a pillar of national strategy." He urged that KIC should not remain focused solely on foreign currency management but should be restructured to directly invest in domestic strategic industries and innovative technologies. He further suggested, "KIC must move away from defensive, foreign exchange-centered management and transform into a Korean-style Temasek (Singapore's sovereign wealth fund) or a Korean-style National Development Fund (NDF) through strategic and innovative investments in national strategic industries." He added, "Through this, the government can strategically manage assets to generate profits, and those profits can be reinvested in industries and returned to the people, creating a virtuous fiscal cycle."

Meanwhile, according to KIC, sovereign wealth funds around the world are growing rapidly. Over the past ten years, the total assets of sovereign wealth funds increased by 101.6%, from 6.4 trillion dollars in 2014 to 12.9 trillion dollars in 2024. During the same period, global GDP grew by 37.5%, from 80 trillion dollars to 110 trillion dollars, indicating that sovereign wealth funds are expanding at a much faster rate. KIC also demonstrated growth, increasing its assets from 84.7 billion dollars to 206.5 billion dollars, a 143.8% rise.