This article appeared on Signal, the capital markets compass, at 2:57 p.m. on Sept. 16, 2026.
As the government's $350 billion investment project in the United States gathers pace, efforts to raise the money are accelerating as well. The Korea-U.S. Strategic Investment Corp. (KUIC), which is solely responsible for executing and managing the investments, has begun selecting underwriters among domestic and foreign securities firms for a bond sale of up to $2 billion. The decision to issue foreign currency bonds ahead of schedule is seen as reflecting a judgment that returns on foreign exchange reserves and borrowing alone cannot cover the U.S. investments planned going forward.
KUIC has sent requests for proposals (RFPs) to major investment banks at home and abroad, according to IB industry sources on the 16th. Proposals are due next week, and after document screening and competitive presentations among the qualifying firms, the underwriting lineup is expected to take shape late this month.
It would be the first foreign currency bond issued since the corporation was launched on June 18 this year, largely aimed at supporting the government's funding for U.S. investments. KUIC was established by the government to take exclusive charge of executing and managing investments in the United States, and it has legal authority to raise investment funds through returns on foreign exchange reserves, bond issuance and borrowing from financial institutions, in addition to the 2 trillion won ($1.4 billion) in capital it received from the government.
Securities industry officials expect the corporation to issue $1 billion to $2 billion, targeting early next year. Only three months after its launch, the new institution needs time to put its own financial statements in place and secure the budget required during the issuance process. Carrying a government guarantee, the bond would be sold with credit equivalent to the sovereign rating, which is a positive, but because the deal has no precedent, the corporation will also have to explain the background and expected effects to overseas investors one by one.
KUIC decided to issue foreign currency bonds because it judged that returns on foreign exchange reserves and borrowings alone would not easily cover the large-scale investments planned ahead. The approach also carries less impact on the exchange rate than buying dollars in Seoul's spot market, and the network of blue-chip overseas investors built up through past issues of foreign exchange stabilization fund bonds can be put to use. In February this year, the government also sold a record $3 billion in foreign exchange stabilization bonds amid strong demand from global institutions.
An investment banking industry official said nothing has been decided on whether the dollar bond KUIC is issuing this time is intended to fund the first project. "If the target is to issue next year, there is a good chance the money will be used for the second and third projects," the official said.
