KIC, NACF to Set up a US$400 Mil. Joint Venture

Choi Hee-nam (right), president of Korea Investment Corp. (KIC), and Lee Jae-shik, president of the National Agricultural Cooperative Federation pose for a photo after signing an agreement to establish a joint venture (JV) for investment in overseas private equity stocks on July 13.

Korea Investment Corp. (KIC) will join hands with the National Agricultural Cooperative Federation (NACF) to expand investment in foreign private equity stocks.

KIC signed a business agreement with the NACF on July 13 to establish a joint venture (JV) and invest US$400 million in overseas private equity stocks.

KIC decided to set up a joint venture with the NACF because it is not allowed to receive investment from external institutions except the Bank of Korea and the Ministry of Strategy and Finance.

The two sides signed a memorandum of understanding on cooperation in overseas investment in May 2019, and have since been exploring ways to put the agreement into practice. Of the US$400 million to be invested in the joint venture, US$300 million will come from KIC with the NACF providing the remaining US$100 million.

The NACF has 402 trillion won in total assets, with most of them concentrated in loans (266 trillion won), economic projects and bond management. It has not thus far ventured into alternative investment.

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