Korea Investment Corporation (KIC) CEO Choi Hee-nam has reiterated that the sovereign wealth fund would boost alternative investments to cope with the changing investment environment due to Covid-19.
The KIC head presented the outlook for social and economic changes after the pandemic and the KIC’s alternative investment strategy at a seminar, local media reported on July 22.
According to the reports: “The pandemic crisis is expected to cause many changes in various areas such as politics, economy, society and culture, including anti-globalization, big government, digital infrastructure and non-face-to-face methods,” Choi said at the seminar. “The KIC is currently enhancing investment returns by quickly recognizing and responding to opportunities and risk factors arising from these changes.”
“We plan to gradually increase alternative investments through private equity, real estate and infrastructure investment strategies,” Choi said.
Meanwhile, Choi had stressed earlier in other media interviews that KIC would increase alternative investments.
In an interview with the JoongAng Ilbo, he said: “Stocks and bonds account for 80% of KIC’s current portfolio. However, stocks are fluctuating and bonds have low yields. Our goal is to gradually increase the portion of alternative investments compared to traditional investments”.
KIC also signed a $400 million joint venture for overseas private equity investments with the National Agricultural Cooperative Federation on July 13. (Reporting by Kyoungho Lee)