South Korea said it plans to use part of its foreign-exchange reserves—the fourth highest in the world—to create a state-controlled overseas-investment fund and boost returns on its holdings

Business Asia, Dec, 2003

South Korea said it plans to use part of its foreign-exchange reserves--the fourth highest in the world--to create a state-controlled overseas-investment fund and boost returns on its holdings. The Government plans to inject reserves in excess of US$121.1 billion ($163 billion) into the fund, which will invest in overseas bonds, stocks and real estate.

Chosun Ilbo reported, citing a Government document the newspaper said it obtained. "There is such a plan but it's at a very preliminary stage," said Min Kyung Seal, deputy director for international financial policy at the Finance Ministry, who denied the newspaper's figures were accurate. "Related ministries have yet to finalise details but we are planning to pass a law some time next year."