Based on “in-depth study”, the aim of the paper is to investigate Korea Investment Corporation (KIC), a non-commodity Sovereign Wealth Fund, in order to analyze its investment strategies over the time (2005-2012) and evaluate any form of “political bias”. Our results suggest that KIC pursues financial objectives, aiming to maximize the portfolio risk/return relationship, as it manages foreign excess reserves of those managed by Bank of Korea. We also argue that a form of “internal political bias” affects investment process, as most of the financial resources are managed in-house. Overall, we support the hypothesis that in Korea Investment Corporation both financial and political objectives coexist.

Does political bias undermine Korea Investment Corporation?

PICHLER, Flavio;
2013-01-01

Abstract

Based on “in-depth study”, the aim of the paper is to investigate Korea Investment Corporation (KIC), a non-commodity Sovereign Wealth Fund, in order to analyze its investment strategies over the time (2005-2012) and evaluate any form of “political bias”. Our results suggest that KIC pursues financial objectives, aiming to maximize the portfolio risk/return relationship, as it manages foreign excess reserves of those managed by Bank of Korea. We also argue that a form of “internal political bias” affects investment process, as most of the financial resources are managed in-house. Overall, we support the hypothesis that in Korea Investment Corporation both financial and political objectives coexist.
sovereign wealth funds (SWFs); institutional investors; asset allocation; political bias; Korea Investment Corporation
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11562/929797
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