Korea investment corporation: its origin and evolution

Woochan Kim ()

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper, I give a detailed account of the creation and the evolution of Korea Investment Corporation (KIC) – a sovereign wealth fund established in 2005 by the Korean government. In doing so, I highlight three of its unique features. First, the case of KIC effectively shows the problem of having an unclear mission statement, which allows the mission to evolve over time and multiple missions to coexist that may contradict each other. Second, it effectively reveals the typical conflicts that may arise between the central bank and the ministry involved when setting up a reserve-based sovereign wealth fund. Third, it effectively shows how a sovereign wealth fund can be operated in a way that favors the bureaucrats and the politicians.

Keywords: Sovereign Wealth Fund; FX Reserve; Currency Crisis; FX Swap; Korea (search for similar items in EconPapers)
JEL-codes: F31 F34 G15 G23 G28 P16 (search for similar items in EconPapers)
Date: 2011-08-01
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Published in Journal of the Asia Pacific Economy 17.2(2012): pp. 22-36

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Journal Article: Korea investment corporation: its origin and evolution (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:44028

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