KIC agrees to joint investment with foreign sovereign funds

By Park Bo-ram
SEOUL, June 19 (Yonhap) -- South Korea's sovereign wealth fund said Friday it has
agreed with two foreign national funds to seek joint investments in the local
market.
The two are Australia's QIC and Malaysia's Khazanah Nasional Berhad, the Korea
Investment Corp. (KIC) said, adding that memoranda of understanding were signed
earlier this week.
The latest deal, part of KIC's efforts to introduce more foreign capital into the
country, came as it awaits legislation over the firm's investments in local
assets and plans to resume overseas investment. At present, KIC is banned from
making local investments.
The manager of around $25 billion in national assets including the foreign
exchange reserve has been cautious in making overseas investments especially
after it suffered hefty losses from a $2 billion investment in bankrupt U.S.
financial giant Merrill Lynch.
To reactivate KIC's investment activities, the government plans to conclude a
contract with KIC to supply US$5 billion to the sovereign fund within the year.
pbr@yna.co.kr
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