Korea's large institutional investors such as the National Pension Service and Korea Investment Corp. will invest 25 trillion won in the alternative investment market this year. Of this, 20 trillion won, or 80 percent, will be invested in overseas alternative investment instruments including equity-linked bonds that invest in foreign blue chip stocks, private equity funds specializing in small- and medium-sized enterprises, and private debt funds aiming for mid-level risk and mid-level return.
Institutional investors from Korea took part in the the ASK 2017 Global PEF/Hedge Fund Summit sponsored by the Korea Economic Daily held on May 17 at Conrad Hotel Seoul revealed their plans for investment.
The National Pension Service and Korea Investment Corp., the country's top-two institutional investors, will put 12 trillion won and 7.8 trillion won, respectively, in alternative investment instruments this year. The combined sum of alternative investment to be made by other institutional investors such as Korea Teachers' Credit Union (1,441.4 billion won) and Hyundai Fire & Marine (1.1 trillion won) is in excess of 5 trillion won. Most institutional investors are turning their attention to alternative investment by which they can earn higher returns than from conventional investment assets.
Eun Sung-soo, CEO of Korea Investment Corp., said in a keynote speech, "If you want to increase your investment returns, you have find opportunities in alternative investment." In today's event, 700 investment professionals from 23 countries across the world have participated.