S. Korea eyes allowing its sovereign wealth fund to purchase local shares

SEOUL, Jan. 15 (Yonhpa) -- South Korea is considering allowing its sovereign
wealth fund to jointly invest in the local stock market in cooperation with its
overseas counterparts, the finance ministry said Thursday.
"Currently, foreign sovereign wealth funds seem to be interested in local stocks,
and are asking for institutional investors including pension funds here to
jointly participate in the market," said Choi Jong-ku, head of the ministry's
international financial bureau.
"To facilitate the entry, the government will discuss diverse ways, including
allowing the Korea Investment Corp. (KIC), to invest in local stocks," he added.
Established in 2005 with the nation's foreign reserves, the KIC is currently
managing around US$24.8 billion worth of assets, with its accumulative profit
rate estimated at 7.69 percent for the first half of last year, according to
government sources.
In December, the ministry said that it will submit a law revision under which the
KIC would be allowed to buy local stocks, bonds and properties.
Local stock markets plunged about 40 percent last year, hit hard by global
financial turbulence and worldwide recession woes.
kokobj@yna.co.kr
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