South Korea Strengthens AI Sovereignty with Launch of KODEX Korea Sovereign AI ETF

South Korea is intensifying efforts to establish dominance in artificial intelligence (AI), with the government prioritizing AI sovereignty as a cornerstone of national strategy. The “Korea Sovereign AI Project” is spearheading this initiative, rallying technological, industrial, and financial sectors to position the nation as a global AI leader. In alignment with this vision, Samsung Asset Management has unveiled an innovative investment vehicle to support the AI ecosystem’s growth.

On October 20, Samsung Asset Management introduced the “KODEX Korea Sovereign AI ETF” during a press briefing at Seoul’s Westin Chosun Hotel. This exchange-traded fund (ETF) is tailored to companies that play key roles in the “Korea Sovereign AI” agenda and focuses heavily on advancements in AI infrastructure, public data, semiconductors, and cloud technologies. The ETF is slated to debut on the KOSPI stock market on October 21, marking a financial milestone in South Korea’s AI journey.

Pioneering the Korea Sovereign AI Project

The “Sovereign AI” initiative is a robust strategy designed to establish state-controlled AI infrastructure, ensure data security, and drive breakthroughs across critical sectors. This project employs a national framework leveraging public data, creating cutting-edge cloud systems, and manufacturing high-performance semiconductors. Talent development in AI is another central goal, aiming to train specialists capable of meeting the demands of this rapidly evolving industry. Flagship initiatives include the “National AI Data Hub” and the “National Large-Scale AI Foundation Model,” with tech giants like Naver, Kakao, and Samsung Electronics serving as essential contributors.

Lim Tae-hyuk, Head of ETF Management at Samsung Asset Management, underscored the broader implications of the new ETF. “Sovereign AI is a global movement, and nations that lag behind risk losing their competitive edge. This ETF represents a critical engine for South Korea’s transformation into an AI powerhouse while aligning with our goal of achieving the KOSPI 5000 milestone,” he said.

Lim further explained that the creation of this ETF symbolizes Samsung Asset Management's next leap forward after surpassing ₩100 trillion ($74 billion) in net assets. “AI innovation transcends mere technology trends—it’s reshaping every industrial landscape. Companies that harness AI to optimize earnings per share (EPS) will emerge as future market leaders,” Lim noted.

Insights from Industry Experts on AI Development

The press event not only highlighted the launch of the ETF but also featured discussions on investment strategies and South Korea’s prospects in the global AI market. Jung Ju-hwan, Executive Director at Naver, spoke about the country’s formidable AI capabilities. “South Korea is globally ranked third in AI technology and is independently advancing a foundation model that rivals 95% of global benchmarks,” Jung stated.

Oh Seung-hun, Samsung Asset Management Center Director, emphasized the potential for simultaneous growth in both AI infrastructure and applications starting next year. “Unlike past speculative tech bubbles, AI remains in a substantive growth phase. The Korea Sovereign AI ETF offers a diversified portfolio encompassing semiconductors, hardware, software, and energy to align with these impending trends,” he explained.

NH Investment & Securities Vice President Ahn Jae-min also weighed in, highlighting the untapped opportunities within the AI ecosystem. “AI has yet to fully penetrate mainstream industries, suggesting immense room for growth. Core sectors like cloud computing, software, semiconductors, and power systems are poised to grow concurrently as AI adoption accelerates across industries,” he stated.

Samsung Asset Management Reaches New Heights

Coinciding with the introduction of the KODEX Korea Sovereign AI ETF, Samsung Asset Management revealed that its “KODEX ETF” series has surpassed ₩100 trillion in net assets after two decades of success. Park Myung-je, Head of Samsung Asset Management’s ETF Division, reflected on this achievement. “Since launching South Korea’s first ETF, KODEX 200, in 2002, we’ve consistently delivered innovative solutions, culminating in this significant milestone. Our commitment remains steadfast to meeting investor expectations with products that redefine innovation,” he shared.

A Public-Private Collaboration for National AI Dominance

South Korea’s drive to secure AI sovereignty signifies a seamless fusion of policy and private sector initiatives. The launch of the KODEX Korea Sovereign AI ETF serves as a pivotal example of this synergy, facilitating national competitiveness in the global AI race. By investing in technology-forward industries, fostering talent, and leveraging financial tools, South Korea is positioning itself to accelerate industrial transformation while leading the global AI narrative.