SEOUL Jan 16 Korea Investment Corp (KIC) will
decide whether to sell its around $1 billion stake in Bank of
America Corp within a month, after watching its value
fall by half since 2008, Korean media reported on Thursday.
The sovereign fund, which manages some $66 billion in
assets, held 0.69 percent of the U.S. bank as of September 2013
through its $2 billion investment in Merrill Lynch in 2008,
before Merrill Lynch merged with BoA.
KIC has seen nearly 1 trillion won ($941 million) in losses
on the investment as share prices tumbled during the global
financial crisis, although the stock started to rebound in 2011.
KIC's new CEO, Ahn Hong-chul, told reporters in New York
that the fund was considering whether to sell the stake and
would decide within a month, Korea Economic Daily and other
A KIC spokesman declined to comment on the reports.
KIC also intends to increase its investment allocation in
alternative assets such as real estate from 8 percent to 30
percent of its total portfolio, Ahn said.
He said the fund's total assets could hit about $100 billion
by the end of 2014.