Korea Investment Corporation (KIC) has signed with the National Agricultural Cooperative Federation (NACF) to form a $400 million joint venture for overseas private equity investments on July 13.

KIC and NACF will invest $300 million and $100 million respectively, the sovereign wealth fund said.

KIC also said that the investment agreement is a follow-up to the memorandum of understanding on overseas investment cooperation signed in May 2019 and through this agreement it will secure the practical foundation for joint investment.

Their corporation will lay the groundwork, such as discussing investment procedures for private equity deals, as well as investment targets and methods. It aims to make its first investment this year.

“With this partnership, we will be able to share opportunities for overseas private equity and enhance returns by reducing fees,” said KIC president Choi Hee-nam. “Going forward KIC will contribute to the development of the financial industry by actively sharing investment networks and insight with domestic investors.” (Reporting by Kyoungho Lee)