South Korea Announces Sovereign Wealth Fund Expansion and Won Internationalization Roadmap on July 15

South Korea's Deputy Prime Minister Koo Yoon-chul announced major economic initiatives on July 15, including plans to expand the country's sovereign wealth fund and internationalize the Korean won. The Korea Investment Corporation (KIC) will establish a strategic investment account to broaden its mandate from a savings-focused fund to a comprehensive sovereign wealth fund, targeting long-term investments in semiconductors, artificial intelligence, advanced materials, nuclear energy, aerospace, and quantum technologies, as well as financial and infrastructure sectors.

The government also plans to release a won internationalization roadmap this month, featuring 24-hour foreign exchange market operations, an offshore won settlement system, and improved access for foreign investors to South Korea's capital markets. The initiative aims to convert the won from a regulated currency to a freely exchangeable currency.