The Korea Investment Corporation (KIC), which manages government assets invested overseas, saw its assets under management grow from $232 billion at the end of 2025 to $246.6 billion as of August, according to data submitted to Rep. Lee Jong-wook of the opposition People Power Party and released Tuesday.
The gains were largely driven by traditional investments, including stocks and bonds, which returned 6.87 percent over the period. Equities delivered a 12.76 percent return, while bonds posted a 0.18 percent loss.
Alternative investments meanwhile generated 4.35 percent return, led by hedge funds with an 8.33 percent gain. Infrastructure investments returned 6.05 percent, followed by private equity at 4.81 percent. Real estate posted the weakest return at just 0.39 percent.
Over the longer term, however, alternative investments performed better.
Over the 10 years from September 2016 through August 2026, KIC recorded an annualized return of 7.14 percent across its total portfolio. Alternative investments generated an annualized return of 8.63 percent, outperforming traditional assets, which returned 6.90 percent annually.
Looking ahead, KIC plans to improve its asset allocation strategy by managing investments as a unified portfolio rather than treating each asset class separately.
“We will work to deliver stable investment returns by strengthening our focus on absolute returns through initiatives such as the Total Portfolio Approach (TPA),” KIC said.
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