The Korea Investment Corporation’s prospects are looking up, as it will be receiving roughly $5 billion dollars in additional capital in the coming months:
- $3 billion will come from the SK government so as to enable the KIC to resume its overseas investing.
- The Ministry of Finance will be allocating another $2 billion later this year in a bid to improve returns on reserves.
- This will take the assets under management up to around $30 billion.
The KIC is apparently out of the penalty box. After its $2 billion investment in Merrill Lynch went sour, it basically decided to withdraw and regroup. This new injection of cash is a sign that they are ready (and the government trusts them) to start investing again. Indeed, $1 billion of the new capital is reported to be heading into high-risk assets:
“(KIC) is studying a variety of investment options, including leveraged buyouts, distressed assets purchases and venture capital…”
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