State-backed AI fund draws strong interest with sellouts, but returns remain uncertain

Korea’s state-backed investment fund targeting next-generation industries such as artificial intelligence (AI) drew strong investor interest on Friday, the first day of public subscriptions, as investors flocked to banks and brokerages to secure allocations. Within hours, online quotas at major platforms were fully subscribed, with some selling out just 10 minutes after subscriptions opened at 8 a.m. Yet despite the buying rush, experts warn that the fund’s eventual returns remain far from guaranteed as its structure effectively locks investors’ money away for five years — a lengthy commitment in fast-moving technology sectors. They echoed earlier policy funds that delivered underwhelming returns. The fund is part of the Korea National Growth Fund launched late last year, one of President Lee Jae Myung’s key economic initiatives aimed at fostering advanced industries, including AI, semiconductors, biotechnology, robotics and rechargeable batteries. The new fund is designed as a fund-of-funds structure, where 3 trillion of the broader 150 trillion won ($99 billion) program has b

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