South Korea has agreed to team up with the Abu Dhabi Investment Authority (Adia), one of the world's largest sovereign wealth funds, for joint investments, a South Korean presidential committee said.
The alliance could pave the way for South Korea's state-run funds such as National Pension Service (NPS) and Korea Investment Corp (KIC) to expand their presence in the global financial market.
Ahn Chang-kuk, an official at the Presidential Council for Future & Vision, said the committee had signed a memorandum of understanding with the Abu Dhabi government for partnership in securing the rights to develop oil fields earlier this month.
The deal includes allowing Adia to invest through a local brokerage in South Korea.
NPS, the world's No.4 pension fund with more than 300 trillion won ($269.7 billion), is looking to boost its overseas investments in such sectors such as resources development.