2024 Annual Report
Investment Highlights
Investments
Governance & Organization
Investment Highlights
Investments
Governance & Organization
20 Years of Shaping Korea’s
Financial Future
Since its founding in 2005 as the sovereign wealth fund of Korea, the Korea
Investment CorporationKIC has paved the way in global financial markets.
Beginning with equities and fixed income, KIC has diversified its investment
portfolio into alternative assets while enhancing its asset management
capabilities as a responsible long-term investor. We have built a 24-hour global
operating system and network through five overseas branches, including those
in New York and London. Having navigated multiple financial crises, our risk
management framework has grown more sophisticated and robust.
Our journey is not a mere record of numbers, but also a testament to our
conviction in the future of Korea and our tireless efforts to achieve it -- and a
guidepost for the road ahead.
We remain committed to our mission of preserving the nation’s future
purchasing power.
With a long-term investment horizon, we will continue to grow as a sovereign
wealth fund leading Korea’s future -- one that sees not only the trees, but also
the forest and the ridgelines of the mountain range stretching beyond.
2005 U.S. Federal Reserve continues policy rate hikes
2005
Promulgation of the
Korea Investment
Corporation Act
On March 2, 2005, the Korea Investment Corporation Act was
passed by the National Assembly and was promulgated as Law
No. 7393 on March 24, establishing the legal basis for the Korea
Investment Corporation.
Establishment of KIC
On July 1, 2005, KIC was established as the sovereign
wealth fund of Korea.
2006. 07. Japan ends zero-rate era
2006
Establishment of Investment
Policy, risk management
guidelines and IT systems
Ahead of its first investment, in June 2006, KIC formulated
a midto-long-term Investment Policy Statement and risk management
guidelines, thereby establishing systems for risk management
and performance evaluation. From its founding in 2005 through
2006, KIC also built its IT system in three phases, establishing
an information strategy plan and developing business support
computer systems and investment operation systems. KIC thus
became the first domestic institution specializing in overseas
investment.
First investment: Indirect
global fixed-income investment
In November 2006, KIC made its first investment -- an indirect
investment of USD 1 billion in passive fixed-income products.
This was followed by indirect equity investments in April 2007
through external asset managers. In selecting them, KIC
conducted rigorous proposal analyses and on-site due diligence
to verify not only management capabilities but also whether their
investment philosophies aligned with KIC’s, and whether their
track records were consistent.
2007. 03. Countrywide Financial shows signs of severe distress
2007. 08. BNP Paribas suspends redemptions from three hedge funds,
signaling the onset of the global financial crisis
2007
Start of direct global
fixed-income investments
In August 2007, KIC made its first direct investment -- in a
USD 1 billion fixed-income index fund. Building direct
investment capabilities has been an important and meaningful
objective for KIC as a long-term investor. It enables us to
reduce fees paid to external asset managers, enhance our
competitiveness in global financial markets and strengthen our
ability to respond to market volatility
2008. 09. Lehman Brothers files for bankruptcy
2008. 11. U.S. Fed announces purchase of MBS
2008
Start of direct global
equity investments
In March 2008, KIC began direct equity investments with a
USD 1 billion passive strategy tracking a global index of
developed market equities. In the second half of 2007, KIC
had established an equity investment division and benchmarked
leading global systems and processes to develop a proprietary
platform optimized for its operating environment. It also built
a world-class electronic trading system and network, and
constructed portfolios using a variety of risk models and
optimized strategies.
2009. 03. U.S. Fed buys back government bond
2009
Establishment of the
Risk Management Division
The 2008 global financial crisis shook financial markets
and economies around the world. At the time, KIC was in
the early stages of direct investment and actively explored
response strategies to turn the crisis into a springboard for
new opportunities. It also pursued structural changes to enable
stable, long-term investment operations. As part of these
efforts, KIC established a Risk Management Division in February
2009. The aim was to strengthen firm-wide risk management
governance and improve related systems by ensuring the
independence of the risk management unit.
Start of global
alternative investments
In August 2009, KIC began expanding its investment targets
to include alternative assets and diversify its portfolio.
It established a new investment policy direction aimed at
strengthening its alternative investment capabilities to generate
long-term returns exceeding inflation and enhance the real
purchasing power of national wealth.
2011. 03. Japan earthquake sparks volatility in global markets
2011. 08. S&P lowers U.S. credit rating
2010 - 2011
Establishment of New York
and London offices
In July 2010, KIC established in New York its first overseas
office, which was followed by the opening of an office in
London in December 2011. KIC also built an infrastructure
system that enabled integrated global portfolio management
between headquarters and overseas offices. This helped reduce
transaction costs caused by time zone differences with major
financial markets, created a foundation for capturing
assetclass-specific opportunities amid rapid market changes and
enhanced KIC’s ability to respond swiftly to emerging risks.
2012. 01. S&P lowers credit ratings of nine Euro zone countries
2013. 12. U.S. Fed announces tapering of bond purchase program
2014. 12. U.S. Fed announces end of QE3
2012
Relocation to State
Tower Namsan
In August 2012, KIC relocated its headquarters from the Seoul
Finance Center in Gwanghwamun to its current location at State
Tower Namsan, marking the beginning of its “Namsan era.”
The move provided KIC with a work environment capable of
accommodating its rapidly growing assets under management
and expanding workforce.
2014
Launch of the Public Community
for Overseas Investment
In April 2014, KIC launched the Public Community for Overseas
InvestmentPCOI. This was part of an effort to expand its network
with domestic financial institutions to more efficiently support
policy objectives related to the development of Korea’s finance
industry.
Today, the PCOI stands as Korea’s only consultative body for
overseas investment among institutional investors. Membership
has grown from 16 institutions at the start to 26 as of 2024.
2015. 12. U.S. Fed implements first rate hikes since 2006
2015
Proposal of KIC growth plan
KIC developed and proposed to the government four initiatives
under a plan to advance KIC, which outlined a vision for KIC’s
growth into a leading global sovereign wealth fund. Key
initiatives include: increasing entrusted assets, strengthening
KIC’s global investment network, enhancing KIC’s role in
supporting Korea’s financial hub policy and establishing an HR
and organizational structure suited to an investment institution.
2016. 06. UK votes for Brexit
2016. 11. Donald Trump is elected U.S. president
2016
Announcement of
Innovation Measures
In February 2016, KIC announced a set of Innovation Measures
to strengthen internal controls and enhance management
transparency. These measures were established in response
to the expansion of KIC’s assets under management,
organizational growth and portfolio diversification, with the
aim of managing investment and operational risks more
efficiently and transparently. Earlier, in September 2015, KIC had
undergone a restructuring to separate the roles of Chief Risk
Officer and Compliance Officer, established a Risk Management
and Audit Subcommittee under the Steering Committee and
strengthened its internal audit function—laying the foundation
for a three-tiered internal control system.
2017
Establishment of
Singapore office
KIC established its Singapore office in September 2017 as
its third global investment base. The office is responsible for
identifying attractive investment opportunities in emerging
markets across Southeast Asia, India and Oceania, particularly
in comparison to developed markets.
2018
2018. 10. U.S.-China trade dispute
Establishment of
Stewardship Principles
In December 2018, KIC established the Stewardship Principles
to fulfill its fiduciary duty as Korea’s sovereign wealth fund and
to lay the policy foundation for the expansion of responsible
investment.
The following year, KIC swiftly incorporated a provision on
responsible investment into its Investment Policy Statement,
establishing a firm-wide framework for its implementation.
This was followed by the adoption of internal guidelines
on responsible investment, which systematized specific
procedures and standards for related activities.
2019
2019. 01. U.S. Fed Chair Jerome Powell declares patient approach to
monetary policy, suggesting a halt to tightening
2019. 12. U.S.-China Phase 1 Trade Agreement
Introduction of an
absolute return framework
In January 2019, KIC adopted an absolute return framework
in response to growing recognition of the need for a proactive
investment strategy capable of delivering returns above inflation
to preserve future purchasing power.
2020
2020. 03. WHO declares COVID-19 a pandemic
2020. 04. The U.S., Europe and other major economies implement
large-scale liquidity and fiscal stimulus measures
Publication of first
Sustainable Investment Report
KIC published its first Sustainable Investment Report, detailing
its responsible investment principles and practices, including
its ESG investment framework and shareholder engagement
activities. KIC has continued to publish the report annually to
enhance transparency and provide direction on its responsible
investment efforts.
Establishment of mid- to
long-term strategy, SGV 2035
To mark its 15th anniversary, KIC established its mid- to long
term strategy, SGV 2035. The strategy outlines KIC’s vision
of becoming a world-class investment institution that grows
national wealth based on trust, and its mission to efficiently
manage sovereign assets and contribute to the advancement
of the finance industry
2021. 11. U.S. Fed officially announces decision to implement tapering
2022. 02. Russia-Ukraine war breaks out. U.S. Fed aggressively raises interest rates
2021
Establishment of
San Francisco office
KIC established its San Francisco office in March 2021. It is
KIC’s fourth overseas office and second location in the United
States. With the New York office in the east and San Francisco
office in the west, KIC has built a well-balanced presence in
North America—its largest investment region. We have been
actively identifying investment opportunities across such areas
as AI, cybersecurity and space technology in Silicon Valley,
particularly through research, venture capital and startup
channels.
2022. 11. Launch of generative AI
and surge in its popularity
2022
Launch of the International
Finance Academy
In April 2022, KIC launched the International Finance Academy
to nurture overseas investment professionals in Korea’s finance
sector. Drawing on KIC’s experience and expertise in global
investing, the academy offers comprehensive courses covering
practical aspects of investing, including global alternative
assets, ESG and risk management. Today, it is Korea’s leading
education program specializing in overseas investment.
Becoming a PRI signatory
In December 2022, KIC became a signatory to the Principles for
Responsible Investment (PRI), the world’s largest responsible
investment initiative and one launched under the auspices of the
United Nations in 2006. Through collaboration and alignment with
fellow signatories, KIC is strengthening its responsible investment
capabilities and establishing itself as a leader in sustainable
investing.
2023
2023. 03. Silicon Valley BankSVB bankruptcy and emergency liquidity supply from the US Federal Reserve
2024. 03. Bank of JapanBOJ raises interest rates for the first time in 17 years, strengthening the yen
Active shareholder engagement
In line with its Stewardship Principles, KIC began directly
exercising voting rights for major listed stocks, establishing
a foundation for active shareholder engagement to enhance
the long-term corporate value of its investee companies and
strengthening its responsible investment capabilities as a global
sovereign wealth fund.
2024
2024. 08. Major sell-off on Wall Street due to shifts in Japanese monetary policy
and concerns about U.S. economic slowdown
Establishment of
Mumbai Office
In April 2024, KIC established its Mumbai office -- our fifth
overseas investment base and first in an emerging market.
As India’s economy continues to grow in the mid- to long
term, driven by the world’s largest population and a vibrant IT
ecosystem, we will focus on finding investment opportunities
in sectors including infrastructure, real estate, venture capital
and private equity
2025. 04. U.S. announces high tariff policy, heightening U.S.-China tensions
and increasing financial market volatility
2025
Establishment of mid-to
long-term management strategy
KIC established and announced its mid-to long-term development strategy.
