Korea Investment Corporation (KIC) posted an investment gain of US$28.5 billion in 2025 for a return of 13.91%, boosting the sovereign wealth fund’s assets to a record $232 billion.
Its equity and bond investments, which account for a combined 78.1% of assets, earned returns of 22.4% and 7.46%, respectively.
KIC released the figures in a statement on February 23, saying that its cumulative net profit since inception in 2005 was $122 billion. It did not disclose last year’s profit.
The wealth fund says last year’s return from equities beat its benchmark by 16 basis points, and the bond return outperformed the benchmark by 47 basis points.
According to KIC, strategies such as “responding to currency-specific rate moves and keeping maturities short contributed to the performance”.
“In equities, a growth-sector-focused approach and identifying individual names proved effective. Strategies that ride growth in materials and financials, and increase weights in leaders supported the results.”
KIC’s investments in alternative asset classes all registered gains. Private equity returned 12.87%; infrastructure, 10.91%; hedge funds, 5.47%; and real estate, 3.94%.
Alternatives account for 21.9% of KIC’s assets. The fund says its alternative investments posted a ten-year annualised return of 8.48% in 2025.
KIC will focus on maintaining portfolio stability as financial markets are expected to exhibit persistent volatility in 2026, according to Park Il Young, the fund’s president, adding that it will introduce a total portfolio approach to investments this year.
KIC says the approach, which involves managing assets as a single, unified portfolio rather than in separate asset classes “will strengthen its foundation for generating sustainable, long-term returns”.
