President Choi Hee-nam of Korea Investment Corp. (Photo: KIC)

The Korea Investment Corp. (KIC) said the KIC is expected to have its operational results for this year turned around to the “plus” side and post 7.5 percent growth after April, President Choi Hee-nam of told Korean media on April 30 at the Millicom Global Conference in the Los Angeles Beverly Hilton Hotel.

KIC’s performance results ended up with a negative growth of 3.7 percent in 2018 due to the downturn in the global securities market, but things are looking up this year. The company is likely to post around $10 billion in earnings, with its total assets likely to grow to $14.2 billion.

The CEO said KIC makes long-term investments and therefore looks for investment targets with sustainable growth prospects, and the replacement investment is the area that has the most upside for investment for the company.

The securities and bonds make up the largest area of investment for KIC, taking up 84 percent, and replacement investment sits at 16 percent. President Choi plans to expand the replacement investment, including investments in real estate, to around 20 percent of total investments in the days ahead.

He recalled that Chairman Howard Max of Oaktree Capital Investment was one of the most impressive figures he met at the conference. He is the financial leader who says they should not follow and buy when others say they want to sell and sell when others want to buy.

Choi believed that replacement investment should be increased in times of low growth, and low interest rates to have the additional profits but the strategies should be developed after analyses of by replacement asset for long-term outlook. He said better investment targets can be found in the area of technology improvement and changes brought about the aging population in the world.

He said China’s Manufacturing Article 2025 for the development of high-tech industries will open up opportunities for investment, while demand for “Silver Housing” for the elderly has been rising, along with healthcare for senior citizens.

The KIC president also said China’s One Belt, One Road Project is opening up investment chances in the neighboring countries like Malaysia with the demand for infrastructure rising for highways and logistics.

KIC is in the middle of boosting its investments in emerging nations, but many regulations have been restricting the replacement investments in those countries with so many regulations on replacement assets, he said, and the KIC slowed down its investments in those countries due to tough regulations on replacement assets. He was invited to speak at the session for the institutional investors from the Asia and Pacific region.

President Choi Hee-nam has been the Chief Executive Officer at Korea Investment Corporation since March 28, 2018. Previously, he was an Executive Director of the International Monetary Fund. Mr. Choi also served as the Deputy Finance Minister of South Korea. He was employed with Multilateral Investment Guarantee Agency.

In February 2016, he filled the World Bank executive director’s office. He had filled senior government posts, including Deputy Finance Minister of International Affairs and Director General of the International Finance. He began his bureaucratic career at the finance ministry after passing the senior civil service exam. Mr. Choi graduated from Hanyang University’s Department of Economics.

The Korea Investment Corporation (KIC) was established in 2005 to manage public funds entrusted by the government and Bank of Korea through investing in a variety of international financial assets. Our net asset value was $91.8 billion as of the end of 2015.

KIC’s mission is to preserve and enhance the international purchasing power of sovereign assets by consistently generating returns that exceed inflation levels, and to contribute to the development of the domestic finance industry.

KIC’s Steering Committee, as its highest governing body, ensures autonomy and independent operation. It has nine members, including the chairman, six professionals from the private sector, the CEO of KIC, and representatives of institutions that have entrusted KIC with assets exceeding one trillion won, namely the Minister of Strategy and Finance and Governor of the Bank of Korea.

KIC reports its business activities to the National Assembly, in accordance with the National Assembly Act and the Act on the Inspection and Investigation of State Administration. It is subject to annual inspections conducted by the National Assembly.

KIC’s investment objective is to generate consistent and sustainable returns in line with and in excess of relevant benchmarks, within appropriate levels of risk. KIC aims to increase returns while (1) minimizing the risks from individual markets and assets through portfolio diversification; and (2) exercising flexibility to seize investment opportunities. Millicom is a leading international telecommunications and media company dedicated to emerging markets in Latin America and Africa.

Operating in 14 countries, primarily using the Tigo brand, Millicom offers innovative and customer-centric products. Millicom employs more than 16,000 people and provides mobile, cable, broadband, TV content, online and financial services to over 50 million customers. Founded in 1990, Millicom is headquartered in Luxembourg and listed on NASDAQ OMX Stockholm under the symbol MIC.