Elliott asked by Korea Investment Corp to halt investing in South Korean firms
{http://www.hankyung.com/news/app/newsview.php?aid=2015081996471}
Korea Investment Corporation (KIC), South Korea's sovereign wealth fund, has asked Elliott Management, a US hedge fund in which it has invested, to halt investing in South Korean firms, Korea Economy Daily reported, citing a source in the investment bank industry.
KIC asked Elliott to stop making investment in all South Korean companies including Samsung C&T [KRX:000830] because of the criticism arising from a foreign hedge fund attacking a domestic firm, the Korean-language report said.
Elliott, a Samsung C&T shareholder, has unsuccessfully attempted to block the merger between Samsung C&T and Cheil Industries [KRX:028260], arguing that the offer undervalued the shares.
According to the source in the report, KIC also warned Elliott that investing in Korean firms may violate the Korea Investment Corporation Act.
KIC invested USD 50m in Elliott in 2010, the item said. Overall, KIC has invested USD 2.6bn in around 20 hedge fund firms since 2010 and has an unrealized gain of 40%, as reported.