Korea Investment & Securities said on Wednesday it signed a joint investment agreement with global investment bank Goldman Sachs for 500 billion won in real estate loans.

Under the agreement, Korea Investment & Securities plans to identify promising investment projects based on experience and know-how accumulated in South Korea's real estate market. Goldman Sachs plans to co-invest across assets and provide funding, based on global capital strength and alternative investment experience.

The joint investment agreement, or facility, is designed to strengthen overall risk management and the return structure for investments in senior secured real estate loans. It is also designed to enable stable investment in high-quality senior loans.

It has added to its portfolio an apartment housing project finance deal under way with a top-tier South Korean construction company. Additional projects, including a secured loan for a mixed-use resort and a secured loan backed by unsold apartment housing units, are also expected to be added.

It also plans to include loan claims in its portfolio going forward, including various domestic real estate development loans and loans backed by physical collateral. It plans to expand the investment size sequentially.

Kim Sung-hwan (김성환), chief executive of Korea Investment & Securities, said, "With this joint investment with Goldman Sachs, we will be able to provide stable liquidity and further strengthen our influence in the domestic market." He added, "It will be an important opportunity to further solidify our position in the real estate finance market."