The Korea Investment Corporation (KIC), Korea's sovereign fund, announced on Nov. 5 that it signed a Memorandum of Understanding (MOU) with the Qatar Investment Authority (QIA) to create a US$2 billion investment fund, with equal contributions of US$1 billion. The MOU signing ceremony took place at Lotte Hotel, Seoul on the same day.
In addition, both parties agreed to establish a joint committee tentatively named the “KIC-QIA Cooperative Committee,” which will be in charge of establishing and executing the fund. The committee meeting will be held in Seoul or Doha once a year. Working-level meetings will also be held if necessary.
The two institutions are planning to exchange information and opinions to have an opportunity for joint investment in Qatar and Southeast Asia through this committee, and to strengthen cooperation in various areas, including risk management.
The QIA is Qatar's sovereign wealth fund established by the government in 2005 to alleviate economic fluctuations stemming from a change in energy prices with an investment of a budget surplus in assets at home and abroad, which originates from exports of natural resources like LNG.