South Korea's Ministry of Finance and Economy and Ministry of Planning and Budget are preparing a draft law for the National Assembly that would let approximately 100 government-sponsored asset pools invest in domestic stocks and international securities.
Among those affected is the Korea Credit Guarantee Fund, which has W4 trillion $3.1 billion of assets under management - all invested in domestic fixed income, mainly government bonds.
Gwak Sung-chul, deputy director for international affairs at KCGF, says the two ministries are keen to prod these myriad of funds to diversify into what Koreans consider risky assets - equities and offshore securities.
The law...
