There are plenty of countries taking money out of their SWFs these days. Korea, apparently, is not one of them, as the Korea Investment Corporation is about to get a top-up of $3 billion. Here’s a representative from the Bank of Korea talking about the decision to give the KIC more money in the WSJ:
“We’ll sign a contract with KIC at the earliest possible time…Korea Investment Corp. has built a track record in investments in public markets over the past years and the size of our foreign exchange reserves has increased in the past year. So, we decided to pour more money into it.”
Clearly Scott Kalb and the folks at KIC have managed to come through the global financial crisis with their domestic legitimacy intact. Given that the fund was established just before the crisis hit (in 2005), things could have definitely gone the other way. Good work!