SEOUL, June 19 (Reuters) - The South Korean government will pump an additional $3 billion into Korea Investment Corporation (KIC) to enable the sovereign wealth fund to resume overseas investment, a newspaper reported on Friday.
The Maeil Business Newspaper cited a senior KIC official as saying that the fund was considering alternative investments which would be made jointly with private equity firms and financial services companies.
“(KIC) is studying a variety of investment options, including leveraged buyouts, distressed assets purchases and venture capital,” the unnamed official was quoted as saying.
KIC manages $25 billion in assets, including part of the country’s foreign currency reserves and assets of the finance ministry.
The fund invested $2 billion in Merrill Lynch early last year before the U.S. bank was bought by Bank of America Corp, which has reportedly translated into heavy losses and led it to shy away from foreign assets.
Reporting by Kim Yeon-hee; Editing by Jonathan Hopfner