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South Korea Throws Banks a Bone

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Finally, the National Pension Service (NPS) of South Korea is letting some of the bulge bracket banks into its $220 billion coffers. Morgan Stanley and Credit Suisse are the first to get a piece of the pie, although we hope they aren't that hungry. South Korea is condescending to let Morgan Stanley and Credit Suisse manage $500 million and $450 million respectively, for a whopping(ly disappointing) three years.
"Oh. Um...great. Well, thanks, I guess," said Morgan Stanley Investment Management's Asia Head, Blair Pickerell, while David Blumer, Credit Suisse's chief executive officer for asset management, reenacted the title track from Oliver! the musical ("Please, Sir, I want some more.").
Taking a note from its batty Northern neighbor, the NPS deals exclusively in five-year plans, from MarketWatch:

NPS plans to double the proportion of its offshore investment to 20% by 2012, when it expects to have assets worth KRW400 trillion, it said recently when it unveiled its 2007-2012 investment strategy. Global asset managers will manage all of its offshore investments during the period, but NPS plans to gradually increase its direct offshore investment after that. It also targets to further increase its international investment allocation to 50% sometime around 2040, when NPS's assets are forecast to reach KRW2,600 trillion.

NPS does plan on throwing scraps to some other major banks to manage funds in the future, although it's several five-year plans away.
Morgan Stanley, Credit Suisse to manage Korean national pension assets [MarketWatch via DealBook]