SEOUL, May 5 (Reuters) - Korea Investment Corp (KIC), South Korea’s $35 billion sovereign wealth fund, has applied for a licence that will allow it to invest in China’s bond and stock markets as it seeks to diversify its investments from dollar-based assets, a local newspaper reported on Thursday.
The Chosun Ilbo daily report comes as South Korea prepares to allocate part of its $307 billion in foreign exchange reserves to yuan-denominated assets. [ID:nL3E7G34QC]
KIC, founded in 2005 from funds entrusted by the government and central bank, invests entirely outside South Korea.
The fund could increase its emerging markets asset allocation in the first half of this year, a senior KIC executive told Reuters in a March interview. [ID:nLDE72804W]
Emerging market economies, such as Brazil, Russia, India and China have been seen as bright lights in an otherwise dreary global economic recovery among advanced economies.
The report added that KIC had applied for the Qualified Foreign Institutional Investor (QFII) licence late last year as part of efforts to cope with the dollar’s decline in the long term.
KIC officials were not immediately available for comment. (Reporting by Ju-min Park; Editing by Chris Lewis)