KIC Presents New Growth Vision... "Aiming to Triple Assets Within 15 Years"

[Asia Economy Reporter Park Jihwan] Korea Investment Corporation (KIC) has decided to nearly triple its asset size by 2035. To achieve this, it plans to enhance investment capabilities to improve long-term profitability, expand collaboration within the financial industry through sharing investment know-how with other institutional investors, and increase joint investments.

On the morning of the 1st, KIC announced its mid- to long-term development strategy for the next 15 years, 'SGV (Sustainable Growth Vision) 2035,' at a seminar commemorating its 15th anniversary held at the Westin Chosun Hotel in Sogong-dong, Seoul.

At the event, KIC President Choi Hee-nam stated, "Aiming to become a world-class sovereign wealth fund, we will continuously generate returns and grow our current asset size of $150 billion (180 trillion KRW) into a large fund with $400 billion (480 trillion KRW) in assets."

Since its launch in 2005, KIC has achieved remarkable growth in just 15 years, reaching a net asset value of $157.3 billion (182 trillion KRW) and cumulative returns of $49.2 billion (5.7 trillion KRW) as of the end of last year.

To achieve its goals, KIC presented three major strategies: △ enhancing long-term profitability △ supporting the development of the domestic financial industry △ implementing responsible management, along with seven short- and long-term strategic tasks to concretize these goals. To increase long-term profitability, KIC plans to strengthen its investment capabilities across asset classes such as strategic asset allocation, equities, bonds, and alternative investments. It will also focus on establishing a proactive risk management system to overcome internal and external uncertainties and volatility.

KIC will also expand collaboration to support the development of the domestic financial industry. It plans to actively share the experience, know-how, and investment networks it has accumulated through overseas investments with other public funds.

Additionally, since 2014, KIC has been actively seeking joint investment opportunities through the Overseas Investment Council, which was launched mainly by domestic pension funds and mutual aid associations. It will also promote measures to strengthen internal controls and transparent management, and continuously improve organizational and performance management systems suitable for its group of investment professionals.

President Choi emphasized, "The new normal era we face today, along with climate change and technological advancements, demands more thorough preparation and bold changes from KIC," adding, "In an era of extreme future uncertainties such as the COVID-19 pandemic, bold vision and strategies are necessary."