Samsung Asset Management Selects 3 Delegated Managers for 1.5 Trillion KRW PIS Fund

[Asia Economy Reporter Kum Boryeong] Samsung Asset Management has selected a fund manager for a global Plant, Construction, and Smart City (PIS) fund worth 1.5 trillion KRW.

On the 28th, Samsung Asset Management announced that it has completed the selection of sub-fund managers for each sector as the lead manager of the PIS fund and has begun actively recruiting investors.

The sub-fund managers for each sector of the PIS fund are Hanwha Asset Management for global plants, KDB Infrastructure Asset Management for construction, and Korea Investment Management for smart cities. They will recruit private sector investors for about four months. Additionally, they plan to invest approximately 500 billion KRW within this year in overseas infrastructure investment and development projects, including overseas orders won by domestic companies.

The government has been promoting the PIS fund as part of its economic policy direction to revitalize overseas orders and exports. In May last year, the Korea Overseas Infrastructure & Urban Development Corporation (KIND) was designated as the fund management specialized institution, and a public-private joint fund is being established.

The PIS fund will receive 600 billion KRW in contributions from government finances and public institutions. The goal is to raise a total of 1.5 trillion KRW by adding 900 billion KRW from private capital and others.

The plant sector sub-fund will invest in power generation facilities such as renewable energy and chemical plants. The construction sector will focus on infrastructure such as airports, roads, and railways, while the smart city sector will concentrate on urban development, smart city infrastructure, healthcare, and logistics.

A total of 11 applications were received for the sub-fund manager selection public offering held at the end of last year. Samsung Asset Management selected three fund managers through sector-specific proposal presentations, document reviews, qualitative evaluations, and due diligence processes.

Separately from the sub-funds, Samsung Asset Management, as the lead manager, is preparing to establish a proposal-type fund worth about 200 billion KRW by the end of next month.

A Samsung Asset Management official explained, "The PIS fund is designed to invest at least 60% of the fund’s capital in collaborative projects with domestic companies," adding, "We will lead this as a successful industry-finance linked project that can contribute to overseas orders by domestic companies and the virtuous cycle of the national economy."

This content was produced with the assistance of AI translation services.