Korea Investment Corporation
 | This article contains promotional content. (January 2021) |
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Native name | 한국투자공사 韓國投資公社 |
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| Company type | Sovereign wealth fund |
| Founded | 1 July 2005 |
| Headquarters | Seoul, Republic of Korea[1] |
Area served | Worldwide |
Key people | Il Young Park (Chief Executive Officer and President) Hoseok Jung (Chief Risk Officer) Hoon Lee (Chief Investment Officer) Sangmin Lee (Chief Operating Officer) |
| AUM | US$ 189.4 billion (2023) |
Number of employees | 312 (2023) |
| Website | www |
The Korea Investment Corporation (KIC; Korean: 한국투자공사; Hanja: 韓國投資公社; RR: Hanguktujagongsa) is a sovereign wealth fund established by the government of South Korea in 2005. Its mission is to preserve and enhance the long-term purchasing power of South Korea's sovereign wealth (foreign reserves) through efficient management of public funds in the international financial markets. KIC manages assets entrusted by the Government, the Bank of Korea, and other public funds as defined under the National Finance Act.[2] KIC directly invests the entrusted assets or re-entrusts the assets to external managers. As of December 31, 2023, KIC has $189.4 billion assets under management.[3]
Governance
[edit]Steering Committee
The Steering Committee deliberates and resolves the following matters (Article 9 of the KIC Act), including: mid- and long-term investment policies; modification of financial status, such as the increase or decrease of capital; entrustment of assets to KIC; appointment and dismissal of executive officers; approval of budget and account settlement; evaluation of management performance of KIC; inspection of the business. The Investment Sub-Committee and Risk Management Sub-Committee support the matters related to mid- and long-term investment policies of the Steering Committee. Furthermore, the Budget Deliberation Sub-Committee and the Evaluation & Compensation Sub-Committee deliberate on issues pertaining to the operation of KIC and performance evaluation.
Committee members include six professionals from the private sector and the three official members who are the representatives of institutions that have entrusted assets exceeding a set amount, namely the Minister of Economy and Finance, the Governor of the Bank of Korea and the CEO of KIC. The six private sector members, who are nominated by the Civil Member Candidate Nomination Committee and appointed by the President of the Republic of Korea, serve two-year terms. The chairman of the Steering Committee is elected from among the civil members.
Board of Directors
KIC maintains a Board of Directors which includes CEO and directors. The Board resolves important issues to be referred to the Steering Committee; use of emergency funds and carrying forward of the budget; matters pertaining to the adoption, amendment to and repeal of internal regulations of KIC; and any other matters of the Board deems necessary.
Chief Executive Officer(CEO)
CEO of KIC is appointed by the President of the Republic of Korea upon recommendation by the Minister of Economy and Finance through the President Recommendation Committee, and deliberation by the Steering Committee. The CEO represents KIC and presides over its business, and convenes the meetings of the Board of Directors and serves as the chairman of such meetings.[4]
Statutory Auditor
In accordance with the Korea Investment Corporation Act, KIC has an independent audit function separate from the management. The full-time Statutory Auditor is appointed by the Minister of Economy and Finance through deliberation by the Steering Committee. Its role and responsibilities are to audit business and accounting activities at KIC.
Directors
Directors are appointed and dismissed by the CEO following deliberation by the Steering Committee. Appointed directors serve three-year terms.
Investment
[edit]Asset Allocation (2023)
| Portfolio | (%) |
| Traditional Assets | 78.0 |
| Alternative Assets | 22.0 |
Milestones
[edit]- Year 2005
March: Promulgation of Korea Investment Corporation Act July: Establishment of Korea Investment Corporation
- Year 2006
June: Signing of investment management agreement with the Bank of Korea
October: Signing of investment management agreement with the Ministry of Strategy and Finance
- Year 2007
April: Launch of global equity investment August: Launch of In-house global fixed income investment
- Year 2008
March: Launch of In-house global equity investment
- Year 2009
March: Expansion of Risk Management team
August: Launch of alternative investment team
- Year 2010
March: Formation of Special Investment Team
July: Opening of New York Office
- Year 2011
December: Opening of London Office
December: Adoption of the Long-term growth strategy 'Vision 2020'
- Year 2012
September 2012: Exceeding USD 50 billion in AUM
- Year 2014
Mach 2012: Launching the Public Community for Overseas Investment
- Year 2016
June 2014: Exceeding USD 100 billion in AUM
- Year 2017
September: Opening of Singapore Office
- Year 2018
December: Establishment of Stewardship Principles
- Year 2019
October: Exceeding USD 150 billion in AUM
- Year 2021
March: Opening of San Francisco office
- Year 2022
April: Exceeding USD 200 billion in AUM
- Year 2022
Dec: Joining the UN-supported Principles for Responsible Investment (PRI)
See also
[edit]References
[edit]- ^ "Korea Investment Corporation - SWFI - Sovereign Wealth Fund Institute". Retrieved 2 December 2016.
- ^ "Korea Investment Corporation Act | KIC Legislation". www.kic.kr. Retrieved 2 September 2023.
- ^ "Korea Investment Corporation (KIC) reports investment return of 11.6% for 2023".
- ^ "Korea Investment Corporation (KIC) names new CEO".
- ^ "Korea Investment Corporation (KIC) milestones".
External links
[edit]| International | |
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| National | |
