September 2020
AAM Magazine
September 2020
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South Korea's KIC, agriculture group in US$400 million private equity tie-up

South Korea flag

South Korean sovereign wealth fund Korea Investment Corporation (KIC) and an agricultural cooperative have formed a US$400 million joint venture for global private equity investments.

KIC is providing $300 million of the funding, with the balance coming from Seoul-based National Agricultural Cooperative Federation (NACF).

The joint venture is expected to make its first investment by the end of this year, KIC says in a statement on July 14.

The move comes after KIC and NACF signed a memorandum of understanding in May 2019 for foreign investments, laying out the groundwork for investment procedures, targets and private equity deals.

According to KIC Chief Executive Officer Heenam Choi, the partnership will “enable us to share opportunities for private equity deals and generate stable returns through cutting costs”.

“Going forward, KIC will share its global network and knowledge with domestic public investors and achieve high returns to contribute to the development of Korea’s finance industry,” he says in the statement.

KIC had $157.3 billion of total assets under management at the end of 2019, including about $24.5 billion in alternative investments.

NACF primarily provides banking and insurance services to some 2.4 million South Korean farmers.