The Korea Investment Corporation (KIC) and Woori Bank have signed a memorandum of understanding (MOU) to explore overseas alternative investments together.   

The two institutions will identify and invest in foreign blue-chip real estate and infrastructure assets to diversify their revenue sources and enhance profitability.

KIC will give Woori Bank a chance to participate in syndicated loans it uses to invest in other companies. The South Korean sovereign wealth has provided other domestic banks with opportunities to participate in syndications it arranges to fund overseas alternative investments through their overseas branches, with loans worth about $540 million arranged by the end of 2020, according to a KIC press release.

“We expect the financial competitiveness of Woori Bank, which is emerging as a global financial company, and KIC’s investment network will create a big synergy effect,” said KIC CEO Choi Hee-nam. “And KIC will continue to contribute to the development of the domestic financial industry by utilizing its abundant overseas investment experience and ability to access advanced information.”

KIC said it has been strengthening overseas investment cooperation with domestic financial institutions, signing MOUs with Korea Post, the National Agricultural Cooperative Federation and the National Federation of Fisheries Cooperatives in 2019. (Reporting by Capital Connect staff)