Korea Investment Management launches fund to ride Korea's market revaluation
What's the deal? Korea Investment ManagementDealroom has a profile for this one. Try Dealroom → said Wednesday it has launched the "Korea Investment Level Up Korea Fund," a fund-of-funds that invests in leading domestic industries and stocks expected to benefit from capital market policy. The firm is betting on a mid- to long-term revaluation of the Korean stock market.
Why now? Korea Investment Management argues the market has entered a phase of structural improvement, as semiconductor-led earnings momentum meets the government's value-up policy. "The earnings rally will continue, driven by a surge in global AI hardware demand," said Jang Ju-young, who heads the firm's Equity Management Division 1.
What's the endgame? The fund targets two themes. "Korea's core industries" covers the AI value chain and semiconductors, physical AI in robotics and mobility, and defense and shipbuilding. "Capital market policy beneficiaries" covers stocks poised to gain from resolving price-to-book ratio (PBR) discounts through measures like Commercial Act revisions, plus Samsung Group stocks and blue-chip KOSDAQ names.
How is it built? The public fund invests in seven sub-private funds, each weighted roughly 14%. It uses a "profit-loss differentiated" structure: general investors enter as senior tranches, while affiliates under Korea Investment HoldingsDealroom has a profile for this one. Try Dealroom → take junior tranches.
What could go wrong? If losses occur, junior investors absorb up to 15% of each fund's net assets first, cushioning retail investors. Up to a 10% return, senior and junior investors share proceeds evenly by contribution weight; excess returns go 55% to senior investors and 45% to junior. Subscriptions run through Korea Investment & SecuritiesDealroom has a profile for this one. Try Dealroom → and Shinhan BankDealroom has a profile for this one. Try Dealroom → PWM branches until the 22nd.
The signal: The launch shows domestic asset managers building products around Korea's value-up drive, aiming to convert semiconductor earnings and policy reform into a broader market rerating — while hedging the downside for retail buyers wary of high volatility.
Read more: The Seoul Economic Daily
