South Korea’s sovereign wealth fund Korea Investment Corp. was seeing a stock price fall in Ontario-based marijuana maker Canopy Growth, as its $18 million bet on the company lost glitter in the first half of 2020, a lawmaker said Monday.
The ruling Democratic Party of Korea’s Rep. Jung Sung-ho added the investment in the pot producer is a point of contention, not only because KIC’s bet has not led to an instant success, but also because investing in marijuana makers is an “insensible” act given that KIC is a sovereign wealth fund that manages over $150 billion of state-owned foreign currencies.
According to Jung’s estimate, based on filings on the US Securities and Exchange Commission, the combined valuation of KIC’s stock holding in Canopy Growth more than halved.
The market value of 493,300 stocks owned by KIC came to $8 million as of end-June, showing a contrast from the $18 million valuation of 415,800 Canopy Growth shares owned by KIC as of March 2019.
Jung urged…
