Perspectives on South Korean Overseas Investments
Institutional Investors
Top 5 Institutional Investors
Name
1 National Pension Service
AUM ($bn) Alternatives ($bn, %)
594.4
1
75.5 (12.7%)
2 Korea Investment Corporation
138.3
22.6 (16.4%)
2
3 Korea Post
102.6
4.4 (4.3%)
4
Korea Federation of Community
Credit Cooperative
66.7
10.0 (15%)
5 The Korean Teachers' Credit Union
32.9
16.4 (50.0%)
3
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Pension Funds
There are a total of four Korean pension funds which are known to outsource
assets to asset managers via funds or mandates. Of which, the state-run pension
fund, National Pension Service (NPS) is the most active in terms of outsourcing
assets to external managers.
Insurance Companies
There are ~25 life insurance players with a total of $558.6bn in assets. Domestic
insurers continue to dominate the life insurance market, with a market share of
86.8%. Korean life insurers have been actively deploying to foreign securities,
quadrupling assets between 2012 and 2017.
Overseas
Investment
18%
by NPS - By
2%
37%
■ US
Japan
■France
■Canada
Country
2%
■ UK
3%
■ Germany
4
5%
■ Spain
4%
5%
7%
16%
3%
■ Netherlands
Italy
■Australia
■ Others
☑
DARC
MATTER
PWC Alternatives Report
Sovereign Wealth Funds
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Korea Investment Corporation (KIC) is ranked 6th in Asia, accounting for ~$110bn
in assets. Assets coming from alternatives have quadrupled from 2012 - 2016,
with aggressive investment into real estate, infrastructure and private equity.
Mutual Aid Associations
There are -76 mutual aid associations in Korea. These associations were
established to offer financial, welfare, and other social security services to
segments of the private sector. Looking at the 6 key associations that outsource
managers, combined investable assets were $46bn and 45% into alternatives.
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