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Sovereign wealth funds

KIC aims to boost alternatives to 25% by 2027

New CEO says to lead domestic financial firms' participation in global syndicated loan projects

By Jul 01, 2021 (Gmt+09:00)

Jin Seoungho holds his first news conference on July 1 since his inauguration in late May
Jin Seoungho holds his first news conference on July 1 since his inauguration in late May

The Korea Investment Corporation (KIC) will gradually increase alternative investments such as venture capital, private equity and debt, and infrastructure to a quarter of its portfolio by 2027 versus the current 16%, its new Chief Executive Officer Jin Seoungho said on Thursday.

Jin, an ex-senior finance ministry official, took office as the sovereign wealth fund's CEO on May 18 for a three-year term.

KIC will adjust its asset allocations to prepare for the possible liquidity squeeze, upward inflationary pressure and prospective interest rate hikes. In the medium to long-term plan, it will raise the portion of the alternatives to 21% by 2024 and 25% by 2027, compared with the 16% as of May this year.

By 2024, it will sharpen investment expertise and strengthen network to be on a par with global sovereign wealth funds, he told reporters in his first news conference as KIC's head.

To help domestic financial institutions' overseas investments, KIC will provide them with more opportunities to join a syndicated lending group where the sovereign wealth fund participates via those institutions' overseas offices, he added.

KIC manages $183.1 billion as of the end of last year.

Write to Jun-ho Cha at chacha@hankyung.com

Yeonhee Kim edited this article.

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