Korea investment corporation: its origin and evolution
AbstractIn 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.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 44028.
Date of creation: 01 Aug 2011
Date of revision:
Publication status: Published in Journal of the Asia Pacific Economy 17.2(2012): pp. 22-36
Sovereign Wealth Fund; FX Reserve; Currency Crisis; FX Swap; Korea;
Find related papers by JEL classification:
- F34 - International Economics - - International Finance - - - International Lending and Debt Problems
- G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
- G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
- F31 - International Economics - - International Finance - - - Foreign Exchange
- P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Edwin M. TRUMAN, 2011. "Are Asian Sovereign Wealth Funds Different?," Asian Economic Policy Review, Japan Center for Economic Research, Japan Center for Economic Research, vol. 6(2), pages 249-268, December.
- Edwin M. Truman, 2011. "Sovereign Wealth Funds: Is Asia Different?," Working Paper Series, Peterson Institute for International Economics WP11-12, Peterson Institute for International Economics.
- Eric Parrado, 2004. "Singapore's Unique Monetary Policy," IMF Working Papers, International Monetary Fund 04/10, International Monetary Fund.
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