KB Asset Management launches fund tracking Korea's 12 strategic industries
What's the deal? KB Asset ManagementDealroom has a profile for this one. Try Dealroom → has launched the KB Korea Advanced Strategic Industries Fund, a listed-stock product investing in growth companies across semiconductors, AI, defense and other sectors the South Korean government has pledged to support. The fund was announced on October 21; its size was not disclosed.
The details: The fund targets the 12 advanced strategic industries designated for cultivation over the next five years through the government's National Growth Fund — semiconductors, displays, secondary batteries, biotechnology, robotics, defense, vaccines, hydrogen, next-generation mobility, AI, critical minerals, and content.
How it picks: KB will screen about 500 stocks, build a model portfolio of 70 to 90 names, then settle on 30 to 50. It assesses technological competitiveness, order backlogs, and earnings power — and excludes stocks that have risen solely on hopes of better governance or shareholder returns.
The firm also plans to hunt for smaller suppliers of materials, parts, and equipment that get little brokerage coverage. The aim is to look beyond large-cap blue chips to small- and mid-cap companies with high growth potential, using company visits and collaboration between sector and portfolio managers.
Why now? Global big tech firms have ramped up AI investment, lifting demand for memory chips, power equipment, and electronic components. In defense, geopolitical uncertainty and rising orders are cited as growth drivers.
"Even within advanced strategic industries, competitiveness and growth potential can differ from company to company," said Beom Kwang-jin, head of KB's pension and wealth management division. "We will identify promising companies and uncover medium- to long-term investment opportunities."
The signal: KB's launch fits a broader South Korean push to channel capital into government-designated sectors, anchored by a scaled-up National Growth Fund now set at a US$167.7B, five-year plan. A separate public-participation fund jointly offered by KB, Samsung, and Mirae Asset raised US$276.8M in its first five business days toward a US$503M target — evidence of the appetite this policy theme is drawing from retail investors.
Read more: en.sedaily.com
Image credit: Generated with Gemini
