KIC 2023 Annual Report

Investment Highlights

Investments

Governance & Organization

INVESTMENTS
Investments

Investment Highlights

Investments

Governance & Organization

Investment Policy & Process Traditional Assets Alternative Assets Special Interviews Investment Stewardship and Sustainable Investment Global Network Development of the Domestic Finance Industry Risk Management Securities Lending

Special Interviews

Overseas Office Staff

Tae Seung Noh, Senior Director

San Francisco

Tae Seung Noh joined KIC’s Private Equity Group in 2014 and has been working at KIC’s San Francisco office since its establishment in 2021. He manages venture capital, tech-focused funds, and direct investments in Silicon Valley. Prior to joining KIC, he worked at an accounting firm and a public institution.

Q — How does working overseas compare with working at headquarters in Korea?: A — The San Francisco office primarily makes venture capital and growth capital investments. These asset classes require face-to-face business and investment processes. You can’t get past the challenge of information asymmetry without meeting people locally, especially for access to investment opportunities. Having a local presence is the only way to be recognized as part of the Silicon Valley community and to exchange investment opportunities. The locality, access to information and investment, and value of having a local office for investing in tech companies are significant.

Q — What are KIC’s advantages, in terms of business opportunities?: A — Market participants recognize KIC as one of the largest managers in the world. They also know that as a sovereign wealth fund, we have permanent capital. KIC is favored for its ability to invest long-term and to respond quickly to the market through local, in-person meetings.

That’s why many well-known companies are receptive to KIC. In fact, the door is open for us to meet with companies we want to invest in, and we often find opportunities during meetings and discussions. We invest conservatively, so not every discussion leads to an investment. But we get opportunities you wouldn’t if you weren’t an institutional investor with a high AUM. So that’s an advantage.

Q — How do you interact with Korean financial institutions in the San Francisco and Silicon Valley region?: A — There are a number of Korean financial institutions in the region, including government-funded organizations such as the Korea Development Bank and Korea Venture Investment, GPs such as Hanwha Asset Management and Korea Investment Partners, and CVCs such as Samsung Ventures and LG Tech Ventures.

KIC mainly helps connect private firms and CVCs with local companies and managers; we can arrange meetings and investment discussions, etc. KIC also helps domestic financial institutions expand their local network through the bi-annual Silicon Valley International Finance Summit.

Q — What does your typical day at work look like?: A — I meet with other institutional investors to research market trends and exchange opinions on investment opportunities, the companies they’ve invested in/are considering, etc. I meet with asset managers to see if there are new companies we can consider investing in and also meet with representatives of our invested companies for updates. I share what I learn with colleagues in San Francisco and headquarters to get feedback. And I prepare and review materials for the investment review committee, which decides whether we’ll go through with an investment.

Asim Rahman, Senior Director

London

Asim Rahman, based in KIC’s London office, started his career in 2000 at a global investment bank and later worked as an analyst and fund manager specializing in European equities at asset management companies in Europe. He joined KIC in 2018 as part of the London office’s local recruitment program and is responsible for managing European equities.

Q — What made you join KIC?: A — A major benefit of working at KIC is its stable and growing asset base. This stability is an attraction given the global economy and asset management industry is facing uncertain and volatile times. In 2018, KIC was growing faster than many sovereign wealth funds and observing rapid growth in AUM. At the current point in time, growth also remains robust. Additionally, the culture of humility, respect, and consistency is something which should be celebrated.

Q — What role does KIC’s London office play in managing the overall portfolio?: A — The London office is a key gateway into UK and European investments across asset classes. Europe is a very diverse group of countries with hundreds of different companies. Knowledge of, and experience with, these companies is key to investing in the region. Hence the London office provides a gateway into the region for investing and insights for headquarters into broader macroeconomic and asset allocation considerations.

And there are multiple reasons why being local in Europe is important. This includes the time difference and the diversity of Europe. The European market encompasses many different countries, companies, restrictions, and customs. Thus, one needs to be close to the region in order to talk on a daily basis with truly local contexts.

As a local employee, I try to bring over two decades of experience to benefit KIC. I have been interacting with all local investment banks and many corporates over this period. Additionally, I hope that experience through more than one recessionary period will help the organization at a time when we are living through a very prolonged economic cycle.

Q — What’s on your schedule for today?: A — The first thing in the morning, I had a meeting with a portfolio manager from the Seoul headquarters. We discussed the global investment approach of KIC, which is also relevant to Europe. Subsequently, I have other meetings with investment banks on investment strategies. Later in the afternoon, I will have a meeting with a company in our portfolio to discuss its recent fourth quarter trading update and outlook for this year. Then, I will monitor our portfolio and equity market movements to see if there are any major implications for our funds and if any adjustments are needed. We have regular interaction with headquarters on developments related to our fund and the macroeconomic landscape, on top of regular dialogue with senior management.

2023 Annual Report