Korea Investment Corp., Seoul, returned 8.5% in 2024, driven by strong gains on equity investments, according to a news release.
KIC is South Korea's sovereign wealth fund, managing public funds entrusted to it by the national government and Bank of Korea.
KIC’s assets increased to $206.5 billion as of Dec. 31, recording the highest asset level since the fund was established in 2005. Accumulated investment gains since inception have totaled $93.9 billion, with an annualized return of 4.75%.
In 2024, the return on equity investments was 18.9%, and the fixed-income return was -0.2%.
Alternative assets posted a seven-year (2018-2024) annualized return of 8.1%, with private equity gaining 12.2%, hedge funds 5.8%, and real estate and infrastructure 5.5%. The annualized return of alternative assets since inception is 7.7%. KIC began investing in alternative assets in 2009.
“While high inflation and geopolitical news kept markets highly volatile, KIC achieved stable returns and remains resilient for the long term,” KIC CEO Il Young Park said in the news release.
"Market sentiment today is mixed, with optimism about AI (artificial intelligence)-led productivity growth and worries over geo-economic uncertainties coexisting," he said. "As a long-term investor, we will continue to build a well-diversified and sound portfolio with thorough risk management and timely investments by exploring opportunities, across asset classes, where structural growth is expected."
At the end of last year, 78.1% of total assets were invested in traditional assets, and 21.9% in alternative assets. KIC continued expanding its alternative investments, which increased by $3.5 billion in 2024.
