South Korea’s KOSPI index closed up roughly 1% on Monday, July 27, as markets responded to a series of commitments from the government and private investors aimed at strengthening the country’s position in semiconductors, artificial intelligence and robotics.

The rally built on Seoul’s $1 trillion plan for semiconductors, AI data centers and robotics, and gained additional momentum after KB Financial Group unveiled a 150 billion won venture fund for the sector. For a market that remains heavily weighted toward chipmakers, the latest moves matter not only as policy headlines but also as signals that public and private capital are still being directed toward the same technology stack.

By the end of trading, the benchmark stood at 6,755.75, up from 6,690.62 at the previous Friday close, according to Google Finance data.

KB Financial targets advanced industries with 150 billion won fund

The 150 billion won, or roughly $100 million, KB Kookmin Growth Unicorn Scale-up Fund was announced on July 27 and is expected to support about six South Korean companies in advanced fields including AI, semiconductors, secondary batteries, aerospace, mobility, robotics and bio.

The plan was approved at the group’s fourth Productive Finance Council on July 24. The money will come from affiliate capital and be managed through KB Securities’ PE Growth Investment Division.

KB is also changing how it evaluates potential recipients. The group said it will place more weight on future value, based on a company’s adoption of advanced technology, than on financial statements when assessing compatibility with the 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 as saying in local media.

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

Lee Jae Myung administration accelerates the technology push

The Lee Jae Myung administration has been a major driver behind the recent flow of capital into the sector. The latest development followed the South Korean president’s meeting with executives from six Silicon Valley venture firms during a July 25 stop in San Francisco, part of his trip to Brazil.

Lee urged the firms to consider Korean startups in their investment discussions and described cooperation between U.S. venture capital and Korean technology and manufacturing capacity as the formula for creating “the next-generation Samsungs, Hyundais, SKs, Navers.”

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

Before the KB fund announcement and Lee’s San Francisco meeting, the Financial Services Commission and the Ministry of Culture, Sports and Tourism unveiled the “K-culture Value-up Fund” on July 22. The ministry said the fund will invest in K-culture companies, AI content and technology. Of the total, 100 billion won is allocated to AI and intellectual property, and 50 billion won to content.

The 150 billion won fund will be financed by the FSC, which is contributing 50 billion won itself, along with 30 billion won each from the Korea Development Bank and the Advanced Strategic Industry Fund. Private investors are expected to add more than 70 billion won.

The FSC said this was the first time its Public Growth Fund had scaled up by pairing with a ministry’s own policy money.

KOSPI recovers after June selloff

The latest activity follows a difficult period for Korean equities. Cryptopolitan previously reported that the KOSPI fell nearly 10% on June 23, while Samsung Electronics dropped 12.3% and SK Hynix declined 12.5% as foreign investors rotated out of AI trades.

That correction hit a market heavily weighted toward chipmakers and came shortly before Seoul announced its roughly $1 trillion plan for semiconductors, AI data centers and robotics, anchored by Samsung and SK Hynix. With that backdrop, Monday’s stronger close and the new private funding suggest that the policy push is being matched by financing efforts across both public institutions and the private sector.

Monday’s stronger close, together with the new private funding, indicates that sector backers are continuing to commit capital.