The Steering Committee deliberates and resolves amendments to the Articles of Incorporation, matters pertaining to mid- and long-term investment policies, matters pertaining to entrustment of asset to the Corporation, matters pertaining to appointment and dismissal of the officers, matters pertaining to approval of budget and account settlement of the Corporation, etc.
The Committee is composed of not more than 12 members, including one Chairman (currently there are nine members). The members of the Committee are i) the head of the trust institution that has entrusted assets exceeding the amount prescribed by Presidential Decree, ii) the President & CEO of KIC, and iii) not more than six persons who are nominated by the Civil Member Candidate Nomination Committee. The term of office of the civil members is two years.
KIC also maintains a Board of Directors that includes the KIC president and directors. The president of KIC is appointed by the President of the Republic of Korea upon recommendation by the Minister of Strategy and Finance through the President Recommendation Committee (as stipulated in Article 18 of the KIC Act) and deliberation by the Steering Committee. Directors are appointed and dismissed by the KIC president following deliberation by the Steering Committee. The Board resolves matters to be referred to the Steering Committee; use of emergency funds and carrying forward of the budget; matters pertaining to the adoption, amendment to and repeal of internal regulations of KIC; and any other matters the Board deems necessary.
In addition, the Investment Subcommittee and Risk Management Subcommittee deliberate on matters related to investment management entrusted by the Steering Committee.
As a body that manages Korea’s foreign exchange reserves, KIC has to maintain a certain level of confidentiality. But pursuant to the KIC Act, KIC discloses financial statements, audit reports, mid- and long-term investment policies, asset mix, and total assets under management (AUM) and return on total AUM in order to ensure transparency and accountability.
In accordance with the KIC Act, the Steering Committee is authorized to review the business activities of KIC as part of its oversight function. Such reviews may be entrusted to an outside agency, enabling audits to be conducted by a private accounting firm. The external auditor is selected by the statutory auditor of KIC. In accordance with the National Assembly Act and the Act on the Inspection and Investigation of State Administration, KIC reports on its business activities to the National Assembly. KIC is subject to annual inspections conducted by the National Assembly and audits conducted by the Board of Audit and Inspection.