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Korea investment corporation: its origin and evolution

Author

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  • Kim, Woochan

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.

Suggested Citation

  • Kim, Woochan, 2011. "Korea investment corporation: its origin and evolution," MPRA Paper 44028, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:44028
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    File URL: https://mpra.ub.uni-muenchen.de/44028/1/MPRA_paper_44028.pdf
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    References listed on IDEAS

    as
    1. Eric Parrado, 2004. "Singapore's Unique Monetary Policy; How Does it Work?," IMF Working Papers 04/10, International Monetary Fund.
    2. Edwin M. TRUMAN, 2011. "Are Asian Sovereign Wealth Funds Different?," Asian Economic Policy Review, Japan Center for Economic Research, vol. 6(2), pages 249-268, December.
    3. Edwin M. Truman, 2011. "Sovereign Wealth Funds: Is Asia Different?," Working Paper Series WP11-12, Peterson Institute for International Economics.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Sovereign Wealth Fund; FX Reserve; Currency Crisis; FX Swap; Korea;

    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

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