Seoungho Jin, Korea Investment Corp.'s new CEO, unveiled a plan designed to propel KIC into the ranks of the top 10 sovereign wealth funds globally.
The "road map," unveiled Thursday, relies in part on sharply increasing alternative allocations to accelerate the fund's growth over the mid- to long-term.
KIC's $183.1 billion investment portfolio as of Dec. 31 left the Seoul-based sovereign wealth fund in 15th place in the Sovereign Wealth Fund Institute's rankings, a KIC spokeswoman said.
To get into the top 10, "we will re-examine the current asset allocation of our portfolio and enhance the return profile through active asset diversification with a long-term investment horizon," Mr. Jin said in a news release.
That review will include increased investment in "future technologies at the center of the fourth industrial revolution," with the help of KIC's newly opened office in San Francisco, Mr. Jin said.
The CEO said his team will aim to boost portfolio allocations to alternatives, including venture capital, to 21% by 2024 and 25% by 2027, from 15.3% at the end of 2020.
The portfolio's remaining allocations as of Dec. 31 were 42.7% for equities, 35.2% for fixed income and 6.8% for inflation-linked bonds and cash.
At a news conference to discuss that new road map Thursday, Mr. Jin said KIC will look to expand its investments in startups and future technologies, in areas such as robotics, health care, self-driving vehicles and renewable energy, the spokeswoman said.
In addition to asset growth and "alternative asset expansion," Mr. Jin listed responsible investments and contributing to the development of South Korea's finance industry as strategic goals.
