Investment in Korea
Major global sovereign wealth funds are diversifying their assets through expanding investment in emerging markets. Capital inflow into Korea is expected to increase as well.
According to IBK Securities and Samsung Economic Research Institute on Oct. 9, the Government Pension Fund Global (GPFG) of Norway and Abu Dhabi Investment Authority of the United Arab Emirates (UAE), the largest and second-largest sovereign wealth funds in the world, are increasing investment in emerging markets as well as Korea.
Abu Dhabi Investment Authority acquired State Tower Namsan, an office building located in Hoehyeon-dong, Seoul, in August. In late 2013, the Abu Dhabi Investment Authority also invested US$500 million in Korean securities and appointed Samsung Asset Management as its securities asset managing company.
Temasek Holdings of Singapore recently visited Korea and became greatly interested in the Incheon Airport Distribution Center of Pantos Logistics. Besides, Temasek Holdings invested in Gyeonggi Iljuk Logistics (Anseong, Gyeonggi Province) in 2011, Hyundai Total Distribution (Anseong, Gyeonggi Province) in 2012 and Oakline West Icheon (Icheon, Gyeonggi Province) in 2013.
According to market research company Preqin, the total amount of sovereign wealth funds worldwide is estimated to be US$6.73 trillion as of Sept. 2014, having grown more than four times compared to the US$1.5 trillion in 2003. This amount is predicted to reach US$9 trillion by 2020.