Definition
Korea Investment Corporation was established in 2005 to preserve and enhance the long-term purchasing power of South Korea’s sovereign wealth through efficient management of public funds in the international financial markets. KIC manages assets entrusted by the Government, the Bank of Korea, and other public funds as defined under the National Finance Act. KIC directly invests the entrusted assets or re-entrusts the assets to external managers. KIC’s Total assets under management stood at US$91.8 billion at the end of 4th quarter 2015.
What is ‘Korea Investment Corporation’
The Korea Investment Corporation (KIC) is a government-owned investment organization that manages the sovereign wealth fund for the Government of South Korea. The KIC was established by law in 2005. The KIC received initial deposits of $17 billion from the Bank of Korea and $3 billion from the Korean Ministry of Strategy and Finance. The KIC has approximately USD$29.6 billion in assets under management as of the end of 2009.
Explaining ‘Korea Investment Corporation’
The KIC is restricted to investing only in assets which fall under the guidelines provided by the Korea Investment Corporation Act. The KIC’s objectives are to enhance Korea’s sovereign wealth and to contribute to the development of the Korean financial industry. The KIC is governed by a steering committee consisting of nine members plus the chairman.
KIC’s mission
Despite the many challenges of raising a young child, the KIC’s mission is still as important as ever. Kids Matter Inc. offers service opportunities for young kids in the foster care and kinship care systems. The nonprofit has more than 50 organizations that partner with the nonprofit. Its goal is to create a healthy environment for children and youth to develop a sense of community. In addition to helping foster children and families, KIC volunteers work with a variety of local nonprofits to provide vital services.
The nonprofit organization provides a wealth of educational opportunities, including courses on using social media and calculating start-up costs. Other courses help you learn how to develop a successful website and give public speaking skills. The KIC also offers peer-focused groups for young professionals and women, as well as mentorship programs. With these programs, you’ll learn how to create a successful business. There are no limits to what you can accomplish at KIC!
Its investment philosophy
The investment philosophy of the Korea Investment Corporation is to invest in traditional assets, such as stocks and bonds, in order to capture risk premiums associated with illiquid investments. Established in 2005, the Korea Investment Corporation is a government-owned sovereign wealth fund in South Korea. The Korea Investment Corporation manages assets entrusted to it by the Korean Government, the Bank of Korea, and other entities. Its primary goal is to increase the nation’s national wealth and attract foreign financial institutions to South Korea.
KIC’s investment philosophy is focused on maximizing returns while minimizing risks. The fund’s diverse portfolio provides a high level of diversification and flexibility to pursue investment opportunities. The objective is to achieve a return higher than benchmarks, known as alpha. To achieve this goal, the KIC seeks to generate excess returns over benchmarks and a lower risk level than other funds. To achieve this, KIC focuses on identifying emerging market growth opportunities and investing in high-quality companies.
Its management
The Korean government has set up a special investment fund called the Korea Investment Corporation, or KIC, for the purpose of protecting and enhancing South Korea’s sovereign wealth. KIC invests the public funds it manages through traditional assets such as listed financial assets and fixed-income investments. It also makes use of alternative assets, which are illiquid, but which capture risk premiums associated with such investments. For example, hedge funds, real estate, and infrastructure can provide returns that are not possible to attain through traditional financial assets.
The KIC Act defines the structure and composition of its management, which is overseen by its Board of Directors. The Steering Committee consists of nine members, including a chairman and six professionals from the private sector. The KIC CEO serves on the Board of Directors, which resolves important issues, such as the use of emergency funds and carrying forward of the budget. The KIC Act also establishes an independent audit function. The Steering Committee of the organization comprises nine members: a chairman, six representatives from the private sector, and three officials representing institutions that entrust the company with assets. The Steering Committee also meets annually with the Minister of Strategy and Finance and the Governor of the Bank of Korea.
Its legal capital
The legal capital requirement was originally designed to protect creditors. If the company’s shareholders invest less than the required capital, take massive loans, or file for bankruptcy, creditors can sue the company to get their money back. This concept still exists, but its relevance has waned. Today, companies tend to get around it by issuing shares at low par values or ignoring the requirement altogether. The benefits are clear, though. Here are some of the ways in which legal capital can protect your interests.
Legal capital was first introduced to protect creditors in times of financial crisis. However, the concept is effectively negated by businesses that issue shares with incredibly low par values. Par value stocks, for example, are generally issued for $0.01 per share and all other receipts are credited to an additional paid-in capital account. This means that if you issue one million shares, you have a legal capital of $10,000. Despite the meaning of legal capital, it is not always clear how to define it.
