Korea’s sovereign wealth fund has received qualified investor status from China, opening the door for investment in its stock markets, the Finance Ministry said Friday.

Korea Investment Corp. received the status of “qualified foreign institutional investor” from the China Securities Regulatory Commission, according to the ministry.

Under the Chinese law, a foreign investor should obtain the QFII status to directly invest in its mainland stock markets.

The approval comes more than a year after KIC applied for the status in 2010, seeking to invest up to $200 million in the Chinese stock markets.

The sovereign fund can start investing in China after receiving an investment quota from Chinese financial authorities, the ministry said. It is expected to begin its investment there in the second half.

Established in 2005, KIC manages a $42.9 billion fund from the central bank’s foreign exchange reserves and the finance ministry’s foreign exchange stabilization bonds. It reported an average yield of minus 3.3 percent in 2011 mainly due to losses from its exposure to sluggish global stock markets. (Yonhap News)