Home > Resources > FAQ
print

FAQ

  • What is the governance structure of KIC?

  • KIC’s highest governing body is its Steering Committee. The Steering Committee sets basic policies concerning KIC’s business and reviews management performance, etc. It also deliberates and resolves amendment to the articles of Incorporation, matters pertaining to mid- and long-term investment policies, matters pertaining to entrustment of asset to the Corporation, matters pertaining to appointment and dismissal of the officers, matters pertaining to approval of budget and account settlement of the Corporation, etc.

    The Committee is composed of not more than twelve members, including one Chairman (currently there are 9 members). The members of the Committee are i) head of trust institution that has entrusted asset of over the amount prescribed by the Presidential Decree, ii)President & CEO of KIC, and iii)not more than six persons who are nominated by the Civil Member Candidate Nomination Committee. The term of office of the civil members is two years.

    KIC also has a Board of Directors that consists of the President and directors. The Board of Directors resolves matters to be deliberated and resolved by the Steering Committee, use of emergency fund and carrying forward of budget, matters pertaining to the adoption, amendment to and repeal of rules of the Corporation, matters pertaining to the adoption, amendment to Internal Control Standards and appointment, dismissal of Compliance Officer, and any other matters the Board of Directors deems necessary.

  • Is KIC an autonomous organization? Is independence ensured for KIC?
  • KIC is a government-owned investment management company, specializing in overseas investments. In order to maximize efficiency of its investments, however, KIC has been designed to be run commercially and independently. The Korea Investment Corporation Act emphasizes and ensures KIC’s independence with regard to its organization and investment management. Two-thirds of the Steering Committee, KIC’s highest governing body, are civil members, and the Chairman is elected among the civil members. KIC’s directors, except the President, are appointed and dismissed by the President through deliberation by the Steering Committee.
  • How much capital is provided for KIC?
  • The capital contribution for KIC is 1 trillion won and the total amount is contributed by the government. Paid-in-capital has been 100 billion won to date.
  • Where does the money that KIC manage come from?
  • Initially, KIC was entrusted USD 17 billion of foreign exchange reserves from the Bank of Korea and USD 3 billion of foreign exchange stabilization fund from the Ministry of Strategy and Finance. With respect to the funds under the National Finance Act, the Corporation can be entrusted with the assets of such funds from January 1, 2007 after the government requests an outside agency to evaluate the Corporation’s management of entrusted assets and report the result to the National Assembly.
  • What is the role of KIC in helping to establish a regional financial hub?
  • The Korean government expects KIC to attract foreign financial institutions to Korea, and accelerate the transfer of financial knowledge and global best practices to the local managers. Overall, KIC will strive to contribute toward further developing the financial management industry in Korea.
  • How does KIC address the transparency issue?
  • As a public company, KIC must address the transparency issue with regard to its business. However, when associated with the country’s foreign exchange reserves, there will be a need to hold related information confidential. Still, KIC will enhance the level of transparency for its asset management by disclosing its financial statements and accounting standards, audit report for financial statements, mid- and long-term investment policies, total amount of AUM and rate of return, composition ratio and rate of return for each asset class. The Steering Committee exercises supervision over KIC’s business, and the Steering Committee may, as prescribed under the KIC Act, entrust a private accounting firm to inspect the business.
  • How does KIC manage its assets?
  • Under the Act on capital Market and Financial Investment Businness, KIC may re-entrust the entrusted assets to domestic or overseas asset management companies. The Act stipulates that KIC manage the entrusted assets outside of Korea as denominated in foreign currencies. Only when it becomes temporarily unavoidable, KIC may manage the entrusted assets as denominated in Korean Won. In such cases, KIC shall manage the assets in a stable and neutral manner such as depositing the assets in financial institutions or purchasing public bonds, etc.