KIC aims to manage $400 billion by 2035

Sovereign wealth fund urged to cooperate with Korean firms

By Park Jae-hyuk

The Korea Investment Corporation (KIC) seeks to increase the size of assets under its management to $400 billion by 2035 from the current $150 billion, according to the head of the nation's sovereign wealth fund, Wednesday.

"We've achieved significant growth as the size of assets under our management rose to over $150 billion last year from $100 billion in 2016," KIC CEO Choi Hee-nam said at a seminar to celebrate the company's 15th anniversary. "I think our return on assets which marked 15.39 percent last year resulted from our investment capability and knowhow."

As of the end of 2019, the KIC posted $157.3 billion in assets under management (AUM) and $49.2 billion in accumulated profit.

Choi emphasized that his company will make more socially responsible investments and will strategically allocate its assets, in order to nearly triple its AUM within the next 15 years.

In addition, he vowed to improve the KIC's risk management system to prevent accidents similar to the fiascos involving private equity funds that Lime Asset Management and Optimus Asset Management had managed.

He also came up with the "Sustainable Growth Vision 2035," promising to make the KIC the world's leading institutional investor that can increase national wealth, based on TRUST, an acronym of talent, renovation, unity, standards and tomorrow.

Guest speakers welcomed the KIC's new vision, but at the same time, they urged the sovereign wealth fund to enhance its partnership with local financial firms.

"Because Korean financial firms are still considered to lag behind in capability of managing assets, I hope the KIC increases the size of assets it entrusts to local financial firms and enter foreign markets jointly with domestic institutions," Deputy Finance Minister for International Affairs Heo Jang said on behalf of Finance Minister Hong Nam-ki. "Introducing Korea's successful containment of the COVID-19, I want the KIC to use its global networks to attract foreign investment to Korea."

KIC Steering Committee Chairman Kim Seok-chin advised the corporation to make more efforts to secure independent governance and global experts.

Rep. Yoon Hu-duk of the ruling Democratic Party of Korea asked the finance ministry and the central bank to entrust more foreign currencies to the KIC, so as to use its handsome profits in increasing the national budget without issuing government bonds nor raising taxes.

During the event, Oaktree Capital Management Co-Chairman Howard Marks and Queensland Investment Corporation CEO Damien Frawley also delivered special lectures via live broadcast.