On its 20th anniversary, the Korea Investment Corporation (KIC), a sovereign wealth fund, unveiled a new vision stating, "By 2035, we will become a global top-tier investment institution that enhances national wealth and realizes the country's future value."
On the 1st, KIC held a ceremony to commemorate its 20th anniversary at the Westin Chosun in Jung-gu, Seoul.
On this day, KIC presented its new vision along with five core values: ▲performance ▲expertise ▲innovation ▲responsibility ▲teamwork. It plans to drive continuous growth through innovation and aims to become a leading investment institution that aspires to achieve world-class standards in performance, capabilities, governance, risk management, and organizational culture.
To realize this, KIC established four key strategies: ▲enhancing long-term revenue ▲securing future growth drivers ▲strengthening national industrial competitiveness ▲establishing a sustainable management system. Specifically, it plans to strengthen its absolute return system (stable returns regardless of the economy), expand new technology investment strategies, improve work efficiency through digital transformation, and build and activate a strategic investment system.
President Park Il-young stated in his opening remarks, "The Korea Investment Corporation has achieved both quantitative and qualitative growth as an organization with $200 billion in assets under management and 300 employees, wisely overcoming various crises, including the global financial crisis and the COVID-19 pandemic. On our 20th anniversary, we will take a new leap forward from a fresh starting line."
He added, "We will secure and cultivate excellent talent with expertise to enhance our investment strategies and establish a 'One KIC' organizational culture based on teamwork, creating stable and superior results. Amid the global transformation centered on economy and security, we will expand our role in investing in the national financial industry and future core growth drivers, thereby contributing not only to enhancing national wealth but also to strengthening national competitiveness and realizing future value as a sovereign wealth fund."
An investment seminar was also held during the event. The seminar featured lectures and discussions by domestic and international investment experts on the role of sovereign wealth funds in the current investment environment and the medium- to long-term development direction needed to achieve this.
Mike Gitlin, Chairman of Capital Group, who served as a special speaker, said, "As volatility in the global financial markets increases, sovereign wealth funds and public investment institutions need to actively preserve and enhance national assets," and noted that "KIC is a representative global sovereign wealth fund that has successfully fulfilled this role over the past 20 years."
Former World Bank President Kim Yong stressed the role of sovereign wealth funds through a keynote lecture on "Infrastructure Investment for a Sustainable Future." Additionally, Jeffrey Jaensubhakij, an advisor at the Government of Singapore Investment Corporation (GIC), shared insights on "Sovereign Wealth Fund Asset Allocation Strategies" based on his experience leading GIC as its Chief Investment Officer for over eight years.
Following the keynote, a panel discussion was chaired by Professor Andong-hyun of Seoul National University and a member of the KIC Operating Committee, who discussed the "Medium- to Long-term Development Direction of KIC."
According to KIC, it was established on July 1, 2005, based on the "Korea Investment Corporation Act" enacted in March of the same year. As of the end of 2024, it has $206.5 billion in assets under management, ranking 14th among major sovereign wealth funds according to the Global SWF research institution.
KIC reported that the expected return on its assets for 2024 is 8.49% before fees and 8.35% after fees, while the annualized return over the past ten years is 5.36%. Traditional asset returns are at 9.30%, while alternative assets such as private equity and real estate recorded 7.68%. In KIC's portfolio, traditional assets account for 78.1% of the total, while alternative assets make up 21.9%.