Norges Bank, the central bank of Norway, drew attention for its investment in Taekwang, a South Korean manufacturer of pipe fittings.

The world’s biggest sovereign wealth fund reported in regulatory filing that it bought over 1.35 million shares of the company for about 1.3 billion won ($1.06 million) on Feb. 13. The transaction which it said is intended for simple investment purposes corresponds to 5.12 percent in Taekwang. The Korean law requires changes in holdings of shares tantamount to 5 percent stake.

The bank, which manages Norway’s $1 trillion oil-funded wealth pot, has been active in its stock investment in Korea. The first Koran stock where its purchase surpassed 5 percent was Naver (then NHN). In 2005, Norges Bank bought 5.16 percent in Korea’s largest internet portal. It went to buy additional stakes, raising its ownership to up to 9.25 percent in 2008. Unlike other sovereign wealth funds that prefer corporate bonds and bull chips, the bank was an active risk taker to pursue high returns. In 2018, Norges Bank said its stake in Naver stood at just 1.13 percent. Other Korean stocks where the bank unveiled its purchasing under the 5 percent stake ownership rule included Woongjin Thinkbig, Hyundai Corp., Humax, SK Materials, Chong Geun Dang Holdings, Unick and Chokwang Paint. The bank said it owned stocks of 501 Korean listed companies as of 2018, which were valued at $11.12 billion.

Taekwang is a mid-sized stock with a stable business result. But its stock value declined 18.4 percent over the past year, with a bleak outlook for rebound in business due to low oil prices and slow recovery in the plant industry. Major shareholders are Daeshin International, Shinyoung Asset Management and Truston Asset Management.

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