ID :
202816
Mon, 08/22/2011 - 15:53
Auther :
Shortlink :
http://m.oananews.org//node/202816
The shortlink copeid
KIC to make additional investment in BoA-Merrill Lynch: report
SEOUL, Aug. 22 (Yonhap) -- South Korea's sovereign wealth fund Korea Investment Corp. (KIC) is considering making an additional investment in BoA-Merrill Lynch even as it suffered heavy losses from its original investment, a report said Monday.
In 2008, KIC invested US$2 billion in Merrill Lynch, but it suffered heavy valuation losses worth around $1.5 billion from its investment, hit by the global financial crisis. Merrill Lynch was later purchased by Bank of America.
The Maeil Business Newspaper said even as KIC sustained heavy losses, it is mulling investing an additional $50 million in shares of BoA-Merrill Lynch in the second half after it poured in $100 million in January. Media officials did not confirm the report.
Market watchers said that as the global financial markets have been roiled by the first-ever U.S. credit downgrade and the eurozone debt fears, KIC's potential investment is feared to incur further losses if BoA share prices suffer a setback.
KIC was established in July 2005 to manage part of South Korea's foreign reserves entrusted by the government and the Bank of Korea. It had more than $35 billion in assets under management as of the end of December.
sooyeon@yna.co.kr
In 2008, KIC invested US$2 billion in Merrill Lynch, but it suffered heavy valuation losses worth around $1.5 billion from its investment, hit by the global financial crisis. Merrill Lynch was later purchased by Bank of America.
The Maeil Business Newspaper said even as KIC sustained heavy losses, it is mulling investing an additional $50 million in shares of BoA-Merrill Lynch in the second half after it poured in $100 million in January. Media officials did not confirm the report.
Market watchers said that as the global financial markets have been roiled by the first-ever U.S. credit downgrade and the eurozone debt fears, KIC's potential investment is feared to incur further losses if BoA share prices suffer a setback.
KIC was established in July 2005 to manage part of South Korea's foreign reserves entrusted by the government and the Bank of Korea. It had more than $35 billion in assets under management as of the end of December.
sooyeon@yna.co.kr
