Government to Secure Funding via Policy Financial Institution Stakes

South Korea is planning the establishment of a sovereign wealth fund with a funding target of 20 trillion won.

According to reporting by the Maeil Business Newspaper, the government is considering a funding strategy that involves utilizing equity stakes in state-run policy financial institutions to secure the necessary capital.

Funding Mechanism and Institutional Involvement

The proposed plan identifies the Korea Development Bank and the Export-Import Bank of Korea as the primary policy financial institutions whose shares would be leveraged to provide the fund’s capital.

This approach to capital procurement is detailed in the 2026 supplementary budget proposal. The proposal bases its calculations on government holdings in these institutions as of the end of February 2026.