Korea Investment Corporation

Country: South Korea

Established: 2005

US$ Billion: 27

Origin: Non-commodity

Entity Structure: Corporation

Transparency Rating: 9

Korea Investment Corporation (KIC) is a government-owned investment management company, specializing in overseas investments.

Enacted by the Korea Investment Corporation Act and created in July 2005. The KIC is structured as a corporation and was initially created by receiving US $17 billion of foreign exchange reserves from the Bank of Korea with an additional US $3 billion from the foreign exchange stabilization fund from the Ministry of Finance and Economy.

Strategies and Objectives:
The asset classes may include securities (including stocks and bonds defined under the KIC Act), foreign currencies, and derivatives, etc. The fund will also utilize external managers.

Korea Investment Corporation Structure:

Source: Korea Investment Corporation

News and Updates

KIC set to make $1 billion alternative investment in H2
According to Reuters, "Korea Investment Corp (KIC) is set to spend $1 billion of its overseas alternative investment budget in the second half in private equity secondary markets, hedge funds and commodities, an official said on Tuesday.

The sovereign wealth fund will make a fresh round of alternative asset purchases this year with $3 billion it is set to receive from the finance ministry.

'We are planning to carry out the investment of $1 billion within this year,' Lee Dong-ik, who leads KIC's alternative investment team, told Reuters on the sidelines of an investor forum."
read more: Reuters

S.Korea's KIC to resume overseas investment- paper
According to Reuters, "The South Korean government will pump an additional $3 billion into Korea Investment Corporation (KIC) to enable the sovereign wealth fund to resume overseas investment, a newspaper reported on Friday.

The Maeil Business Newspaper cited a senior KIC official as saying that the fund was considering alternative investments which would be made jointly with private equity firms and financial services companies."
read more: Reuters

Merrill Lynch CEO plans to meet Korea Sovereign Fund Chief -Sources
According to Dow Jones, "Merrill Lynch & Co. chief John Thain will have meetings with South Korea's sovereign wealth fund and key government officials during a visit to the country in the third week of September, Korean officials said Wednesday."
read more: Dow Jones

KIC changes $2 billion in preferred stock into Merrill common stock
According to Reuters, "Korea Investment Corporation (KIC) has converted $2 billion worth of preferred Merrill Lynch (MER) stocks into common shares, more than two years ahead of schedule, in a move to cut losses from its first investment in a U.S. bank.

The conversion was made on Monday when the Wall Street bank said it would take a $5.7 billion third-quarter write-down as it unloaded huge amounts of risky debt and raise $8.5 billion by selling new stock. "
read more: Reuters

Barclays and KIC seek possible deal
According to Reuters, "British bank Barclays has held talks with an investment fund backed by the Korean government as it explores options for raising billions of pounds of fresh capital."
read more: Reuters

Extra $10 Billion Fusion from the Government
Guan Ong, chief investment officer of the fund announced on Tuesday that the KIC will receive US$ 10 Billion. The Korean Government plans to increase assets of the fund to US$ 50 Billion by 2010.


KIC site

Major Direct Foreign Investments (Public)

Company Country Industry % Ownership Comments
Merrill Lynch United States Financials 7.4%

1. All figures quoted are from official sources, or, where the institutions concerned do not issue statistics of their holdings, from other publicly available sources.

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