Korea investment corp plans to invest in Metaverse and AI
South Korea’s sovereign wealth fund is taking small risk to increase its investments in Artificial intelligence (AI) and Metaverse.
In Q4 2021, Facebook announced to rebrand its name into Meta and the CEO of Facebook said that Metaverse will be the main initiative of the company. The main aim of the rebranding of the name was exhibited in the hope that Metaverse will be a game-changer in the future. No matter whether Facebook did what at this moment in Metaverse-based initiatives but the majority of the tech companies and crypto projects are already doing their best by giving a link with the Metaverse concept. The majority of the investors are looking at Metaverse-based projects and companies’ investments because these are showing a better push.
Korea Investment Corp (KIC) is a Korean Sovereign fund, which is holding around $200 billion. Now, this fund is looking to invest in the startups of AI and Metaverse-based projects. KIC will increase its investments in Silicon Valley startups because the majority of them are looking to give exposure to Metaverse-like concepts.
According to the report of Bloomberg, The head of KIC noted that past months showed very well how the hike in the interest rate by the Federal Reserve is giving a better push to a negative situation for the stock market. So KIC is looking at better options besides the stock.
Seoungho Jin, CEO of KIC, responded against the questions of such new decisions to go with the investment in Silicon valley based projects.
Jin told the local Korean media that Silicon Valley is really in a saturation state but still it has a better source of global growth.
Jin also noted that investment in such alternative assets could result in a 25% surge in the portfolio of KIC and it will help the increment in the portfolio of KIC by 17% over last year.
According to the report of Bloomberg, KIC aimed to increase the investment by 2% in alternative assets, including private equity and hedge funds, this year.
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