S. Korea adds US$3 bln to sovereign wealth fund

SEOUL, July 15 (Yonhap) -- South Korea's sovereign wealth fund has received a
US$3 billion capital injection from the government and will expand its targets
for investment to boost returns, its chief said Wednesday.
With the new money infusion from the Ministry of Strategy and Finance, Korea
Investment Corp. (KIC) now has a total of $27.8 billion under its management,
Chin Young-wook told reporters. KIC is slated to receive an additional $2 billion
in the second half of this year.
KIC, which also manages part of the nation's foreign exchange reserves, plans to
diversify its investment portfolio in order to bolster returns, Chin said.
"KIC plans to tap alternative investments on top of stocks and bonds to counter
fluctuations in the global financial market and to secure consistent and
long-term returns," he said.
New investment targets will include overseas properties, hedge funds and
commodities, with $1 billion out of the newly injected money earmarked for such
alternative investment, Chin said.
Last week, KIC signed a preliminary deal with the Kuwait Investment Authority,
Kuwait's sovereign wealth fund, to seek increased mutual investment. It also
reached similar agreements with Australia and Malaysia in June in a bid to invite
more foreign capital into the local market.
pbr@yna.co.kr
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