KIC Explores European Software Investment Opportunities: "A Complement to AI"

The sovereign wealth fund Korea Investment Corporation (KIC) invited domestic institutional investors and local investment experts in London, UK, to discuss the software industry in the age of artificial intelligence (AI) and private equity (PE) investment strategies.

On April 27, KIC announced that its London branch hosted the 36th London International Finance Council on April 24 (local time).

More than 30 representatives from the Korean government and public investment institutions, as well as private financial companies in securities, banking, and insurance, attended the event.

David Toms, Head of Research at the UK asset management firm Hg, who delivered the keynote presentation, said, "Contrary to concerns that software may be replaced due to the recent spread of AI, AI and software are actually forming a complementary relationship." He emphasized, "In particular, software that is essential for handling the core work of companies will remain competitive in the AI era, as it accumulates data and expertise."

He also argued for the long-term upward trajectory of software companies' performance. He said, "The global labor market spending budget amounts to about 60 trillion dollars (approximately 8,823.6 trillion won) annually, whereas software spending is only about 1 trillion dollars." He projected, "As AI-based automation spreads in the future, software spending will surpass labor budgets, leading the software industry to long-term growth."

Hg is the largest technology-focused private equity firm in Europe, headquartered in London, UK. As of last year, it managed over 110 billion dollars in assets.

Lee Geon-woong, Head of the London Branch and host of the event, commented, "As the pace of change across industries accelerates due to the recent spread of AI, it was a valuable opportunity to review the structural growth potential of the software industry and discuss private equity investment opportunities."

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