Korean banks fund alternative deals with $540 mn loans via KIC

South Korean banks have offered a combined $540 million in syndicated loans to fund overseas alternative investments, in which Korea Investment Corporation (KIC) participated, as of the end of last year.

“KIC has provided domestic banks’ overseas branches with opportunities to participate in loan syndication groups to fund alternative investments, as part of efforts to help Korean financial institutions' globalization,” KIC said in a statement on Feb. 9.

The remarks were made on the sidelines of signing a memorandum of understanding with Woori Bank, one of South Korea’s leading banks, to cooperate in overseas real estate and infrastructure investments, as well as lending on alternative investments. Under the agreement, both KIC and Woori Bank will make comprehensive cooperation from deal sourcing, co-investing and employee training to research.

Last week, KIC Chief Executive Choi Heenam told a new year’s news conference that the sovereign wealth fund will increase the opportunity for the domestic banks’ overseas branches to participate in loan syndications for global alternative deals.

Back in 2019, KIC signed preliminary agreements with Korea Post, National Agricultural Cooperative Federation (NongHyup) and National Federation of Fisheries Cooperatives (Suhyup) to make co-investments abroad.

The sovereign wealth fund is seeking to expand the pool of institutions that entrust KIC with overseas investments into mutual aid associations and cooperatives, beyond the finance ministry and the Bank of Korea.

Write to Chang Jae Yoo at yoocool@hankyung.com
Yeonhee Kim edited this article.