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 Korea Investment Corporation (hereinafter referred to as “KIC '') was established under the Korea Investment Corporation Act (hereinafter referred to as “KIC Act ''). The legal framework for KIC, based on the KIC Act, provides legal soundness for KIC and its transactions.

The KIC Act states KIC’s legal basis, governance structure, scope of work and relationship with other laws and state bodies, such as the Ministry of Economy and Finance. 


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, etc. 

The standard accountability information and process for appointment to each position can be found in Chapters 2 and 3 of the KIC Act.




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 is publicly disclosed on the website, and clearly states our investment objectives, investment principles, investment asset classes and asset allocation, and details regarding our external fund managers, risk management, performance evaluation and compliance monitoring. 

In addition, guidelines including financial risk exposures are specified in the asset trust contract.

The external fund manager selection process and performance monitoring plan are defined in KIC’s internal regulations for investment management.