The Korea Times close
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Business
  • Tech
  • Bio
  • Companies
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
Entertainment
& Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
Sports
World
  • SCMP
  • Asia
Video
  • Culture
  • People
  • News
Photos
  • Photo News
  • Darkroom
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
  • The Korea Times
  • search
  • Site Map
  • E-paper
  • Subscribe
  • Register
  • LogIn
search close
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
Thu, August 11, 2022 | 17:29
Policies
KIC also urged to stop investing in Japan
Posted : 2019-08-13 15:52
Updated : 2019-08-13 20:35
Print Preview
Font Size Up
Font Size Down
KIC CEO Choi Hee-nam
KIC CEO Choi Hee-nam
By Park Jae-hyuk

The Korea Investment Corp. (KIC) is facing the same pressure as the National Pension Service (NPS) to stop investing in Japanese companies involved in Japan's wartime slave labor.

It was revealed Friday that the sovereign wealth fund invested 463.4 billion won ($380 million) in 2018 in 46 Japanese firms with ties to wartime forced labor during the 1910-45 Japanese occupation of Korea.

In response, lawmakers proposed a bill to revise the Korea Investment Corporation Act, to restrain the KIC from investing in those firms.

"Japanese firms involved in forced labor are trying to avoid their legal responsibilities, although 7.5 million Koreans suffered slave labor during the Japanese colonial period," said Rep. Kim Kyung-hyup of the ruling Democratic Party, one of the lawmakers who proposed the revision.

"The sovereign wealth fund should set up its principle for socially responsible investments, not only focusing on return on investments."

According to data the KIC gave Kim, the sovereign wealth fund invested $3.4 billion in 2018 in Japanese firms listed on the stock market. This was 7.4 percent of its total investment in foreign stocks.

'Fundamentals of Korean economy strong'
'Fundamentals of Korean economy strong'
2019-08-13 16:25  |  Foreign Affairs

In addition, the KIC's investment in Japanese bonds last year reached $6.9 billion, 14.4 percent of its total investment in foreign bonds.

The KIC is a sovereign wealth fund managing assets entrusted by the Ministry of Economy and Finance and the Bank of Korea. It has assets worth $144.5 billion.

In 2018, it promised to take environment, social and governance (ESG) criteria into account when making investments in foreign companies.

Kim, however, criticized the KIC for not coming up with specific guidelines earlier.

The Korea Times called the KIC for comment, but it has yet to respond.

As tension between Korea and Japan has escalated since Japan placed export controls on shipments to Korea, lawmakers have proposed a series of bills to revise laws to prohibit government-run institutions from investing in Japanese firms linked to wartime forced labor.

On Aug. 6, Rep. Kim Kwang-soo of the minor opposition Party for Democracy and Peace (PDP) proposed a bill to restrain the NPS from investing in those firms.

The NPS has faced criticism since it was revealed that the pension fund invested 1.23 trillion won in 2018 in 75 companies involved in forced labor.

Although the Ministry of Health and Welfare supervising the NPS has been reluctant to restrict the investments, NPS Chairman Kim Sung-joo hinted it may cut ties with those Japanese firms.

According to the Financial Times, an English-language international daily newspaper owned by Japanese company Nikkei, the chairman said: "We are in the process of adopting a new guideline of responsible investment and we are reviewing whether Japanese war crime companies should be excluded from our investment list.

"In order to do that, we need to develop a clear definition of 'war crime companies,' whether they actually participated in war crimes."



Emailpjh@koreatimes.co.kr Article ListMore articles by this reporter
 
LG
  • Korea urged to take preemptive steps to deal with climate change-induced disasters
  • What Seoul's worst rainfall in 115 years looked like
  • Musinsa's new store becomes hot spot in southern Seoul
  • Flood damage to vehicles during torrential rain to hit insurers
  • 'Children must play right now'
  • Bill Gates expected to meet with top business leaders in Korea
  • Seoul reiterates that '3 Nos' policy is not commitment to China
  • Han River sunset cruise: Seoul's new tourist focal point
  • [INTERVIEW] Polish arms deal may well lead to greater opportunities for Korea: expert
  • Samsung aims to attract more users with new foldable phones
  • Interactive News
  • With tough love,
  • 'Santa dogs' help rebuild burnt forests in Andong
  • 'Santa dogs' help rebuild burnt forests in Andong
  • A tale of natural wine
    • 'Good Doctor' director to debut Netflix's high-strung suspense series, 'A Model Family' 'Good Doctor' director to debut Netflix's high-strung suspense series, 'A Model Family'
    • Musical 'Kinky Boots' tells people to love themselves as they are Musical 'Kinky Boots' tells people to love themselves as they are
    • Death of young webtoon artist sparks controversy over harsh working conditions Death of young webtoon artist sparks controversy over harsh working conditions
    • Crime thriller 'Limit' is about mother's quest to save abducted son Crime thriller 'Limit' is about mother's quest to save abducted son
    • From P1Harmony to Zico, K-pop hotshots to perform in Abu Dhabi next month From P1Harmony to Zico, K-pop hotshots to perform in Abu Dhabi next month
    DARKROOM
    • Ice is melting, land is burning

      Ice is melting, land is burning

    • Tottenham 6-3 Team K League

      Tottenham 6-3 Team K League

    • Afghanistan earthquake killed more than 1,000

      Afghanistan earthquake killed more than 1,000

    • Divided America reacts to overturn of Roe vs. Wade

      Divided America reacts to overturn of Roe vs. Wade

    • Namaste: Yogis to celebrate International Yoga Day

      Namaste: Yogis to celebrate International Yoga Day

    The Korea Times
    CEO & Publisher : Oh Young-jin
    Digital News Email : webmaster@koreatimes.co.kr
    Tel : 02-724-2114
    Online newspaper registration No : 서울,아52844
    Date of registration : 2020.02.05
    Masthead : The Korea Times
    Copyright © koreatimes.co.kr. All rights reserved.
    • About Us
    • Introduction
    • History
    • Location
    • Media Kit
    • Contact Us
    • Products & Service
    • Subscribe
    • E-paper
    • Mobile Service
    • RSS Service
    • Content Sales
    • Policy
    • Privacy Statement
    • Terms of Service
    • 고충처리인
    • Youth Protection Policy
    • Code of Ethics
    • Copyright Policy
    • Family Site
    • Hankook Ilbo
    • Dongwha Group