Based on “in-depth study”, the aim of the chapter is to analyze Korea Investment Corporation (KIC), a non-commodity Sovereign Wealth Fund, in order to investigate 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 the Korea Investment Corporation?

PALTRINIERI, Andrea;MIANI, Stefano
2014-01-01

Abstract

Based on “in-depth study”, the aim of the chapter is to analyze Korea Investment Corporation (KIC), a non-commodity Sovereign Wealth Fund, in order to investigate 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.
2014
9781137413581
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11390/1030546
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