Santiago Principles Self-Assessment

Korea Investment Corporation

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  • Pillar 1: Legal
  • Pillar 2: Institutional
  • Pillar 3: Investment
Principle 1

1. The legal framework for the SWF should be sound and support its effective operation and the achievement of its stated objective(s).

1.1. The legal framework for the SWF should ensure legal soundness of the SWF and its transactions.

1.2. The key features of the SWF’s legal basis and structure, as well as the legal relationship between the SWF and other state bodies, should be publicly disclosed.

The legal framework for the Korea Investment Corporation is publicly disclosed through the Korea Investment Corporation Act. The framework provides legal soundness for KIC and its relationship with other state bodies and transactions. The KIC Act states that the corporation shall be a juridical person. KIC’s relationship with other laws and state bodies such as the Ministry of Strategy and Finance is publicly disclosed on KIC Act.

Principle 6

6. The governance framework for the SWF should be sound and establish a clear and effective division of roles and responsibilities in order to facilitate accountability and operational independence in the management of the SWF to pursue its objectives.

The KIC Act establishes a clear and sound governance framework for KIC with an effective governing body – CEO, Steering Committee, Statutory Auditor and etc. The standard accountability information and process for appointment to each position can be found in the Annual report.

The governance of KIC and its structure have adopted high ethical standards and transparency as basic principles of its operation. Following examples and principles are provided on our website – https://www.kic.kr/en/in/in060100.jsp

Principle 18

18. The SWF’s investment policy should be clear and consistent with its defined objectives, risk tolerance, and investment strategy, as set by the owner or the governing body(ies), and be based on sound portfolio management principles.

18.1. The investment policy should guide the SWF’s financial risk exposures and the possible use of leverage.

18.2. The investment policy should address the extent to which internal and/or external investment managers are used, the range of their activities and authority, and the process by which they are selected and their performance monitored.

18.3. A description of the investment policy of the SWF should be publicly disclosed.

KIC’s Investment Policy statement, including objectives, risk tolerance, and investment strategy, is published on our website.

http://www.kic.kr/en/ki/ki010000.jsp

Investment Policy and Investment Process provides guidelines to the public on how the investment decision-making process (including financial risk exposures) is performed. Annual reports include portfolio management objectives.

http://www.kic.kr/en/ki/ki010000.jsp

Information about the asset portfolio and its range between external to internal management is publicly provided through our annual report.

A separate External Fund Manager (“EFM”) Guideline addresses the process by which they are selected and their performance monitored. This information is provided in our annual report.