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S.Korea says MBK fund plans $2 bln investment

  South Korea’s state-run pension agency said on Thursday it had obtained private equity firm MBK Partners’ preliminary agreement to invest $2 billion in the country.


It added that it was pursuing another $3 billion inward foreign investment deal with a separate investor. The announcement comes just a day after the pension agency unveiled a $3 billion preliminary deal from US-based Oaktree Capital Management.

The National Pension Service, which manages about 230 trillion won ($165 billion), said in a statement MBK was likely to put the $2 billion into domestic investment projects such as infrastructure, companies and property. South Korea-based MBK’s funds originate mostly from foreign pension and sovereign funds.

An NPS spokesman told Reuters the agency was also in the process of negotiating another $3 billion with a US-based asset manager. The deals come as South Korea grapples with the fallout from the US financial crisis, with its won currency tumbling to 10½ year lows against the dollar on persisting dollar shortages. (Reuters)