South Korea’s KOSPI rides semiconductor, AI, robotics push to close in the green

South Korea’s KOSPI index closed up roughly 1% for the day on Monday, July 27, as markets reacted to a wave of commitments from the government and private investors buying into the Asian country’s push to claim a stake in regional and global semiconductor, AI  and robotics relevance. 

The positive wave that started with Seoul’s $1 trillion plan for semiconductors, AI data centers, and robotics grew bigger this week as KB Financial Group rolled out its own 150 billion won venture fund backing for the sector. 

By the time the markets closed for the day, the conviction pushed the benchmark to 6,755.75, up from its 6,690.62 close the week before on Friday, according to Google Finance data.

Where is KB Financial investing its 150 billion won bet on Korean tech? 

The 150 billion won (roughly $100 million) KB Kookmin Growth Unicorn Scale-up Fund, revealed on July 27, plans to support about six South Korean firms in advanced fields such as AI, semiconductors, secondary batteries, aerospace, mobility, robotics, and bio. 

The plan was waved through at the group’s fourth Productive Finance Council on July 24, with the funds coming from affiliate capital and run through KB Securities’ PE Growth Investment Division. 

KB is also shaking up the process to decide which companies will get a slice of the $100 million its council approved. For example, the group said that future value, based on firms’ adoption of advanced technology, will rank higher than financial statements in its criteria for testing candidates’ compatibility with its fund. 

“For early-growth-stage companies that will be eligible for support from the Unicorn Scale-up Fund, it is difficult to judge growth potential based on financial statements alone,” a KB Financial Group official was quoted in local media.

The group also said it is setting up an “Advanced Strategic Industry Study Forum” to train its screening staff. The same official continued that the goal is “to cultivate screening personnel with the expertise and foresight to look ahead to the future development potential of industries and technologies.”

The advanced tech push comes from the top of the Lee government 

The Lee Jae Myung administration has been a major catalyst for the funds coming into the country. The latest headline came after the South Korean president lobbied executives from six Silicon Valley venture firms to consider Korean startups in their investment meetings during a July 25 San Francisco stopover that punctuated his trip to Brazil.

Lee pitched the pairing of US venture capital with Korean tech and manufacturing capacity as the formula for building “the next-generation Samsungs, Hyundais, SKs, Navers.” 

The National Pension Service, which holds 1,690 trillion won in assets, signed a memorandum of understanding (MOU) on investment cooperation at the end of the meeting. The six-firm group, which includes Andreessen Horowitz, Sequoia Capital, and General Catalyst, collectively manages a combined $313 billion.

Before the 150 billion won KB fund and Lee’s San Fransciso meeting, the Financial Services Commission and the Ministry of Culture, Sports and Tourism announced the “K-culture Value-up Fund” on July 22. The ministry will invest in K-culture firms, AI content and technology. Of the total, 100 billion won is earmarked for AI and intellectual property, and 50 billion won for content.

The 150 billion won will be contributed by the FSC, which is putting 50 billion won by itself, 30 billion won each from the Korea Development Bank and the Advanced Strategic Industry Fund, with private investors expected to add more than 70 billion won. 

The FSC called it the first time its Public Growth Fund has scaled up by pairing with a ministry’s own policy money.

South Korea is moving on from June’s selloff

The activity follows a rough stretch for Korean equities. Cryptopolitan previously reported that the KOSPI fell nearly 10% on June 23, with Samsung Electronics down 12.3% and SK Hynix off 12.5% as foreign investors rotated out of AI trades.

That correction landed on a market heavily tilted toward chipmakers, and it came shortly before Seoul unveiled a roughly $1 trillion plan for semiconductors, AI data centers, and robotics anchored by Samsung and SK Hynix. Monday’s higher close, alongside the new private funding, suggests the sector’s backers are still committing money rather than retreating.