South Korea said it plans to use part of its foreign-exchange reserves--the fourth highest in the world--to create a state-controlled overseas-investment fund and boost returns on its holdings.

• Position: SOUTH KOREA

South Korea said it plans to use part of its foreign-exchange reserves--the fourth highest in the world--to create a state-controlled overseas-investment fund and boost returns on its holdings. The Government plans to inject reserves in excess of US$121.1 billion ($163 billion) into the fund, which will invest in overseas bonds, stocks and real estate. Chosun Ilbo reported, citing a Government document the newspaper said it obtained. "There is such a plan...