Hong Nam-ki Reviews 'National Infrastructure Fund' Utilizing Resources from the 'Korean New Deal'

Deputy Prime Minister for Economy Hong Nam-ki attended the plenary session of the Planning and Finance Committee held at the National Assembly on the 28th, listening to the questions from the members who remained tightly silent. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Song Seung-yoon] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, stated on the 28th that regarding the utilization of private funds for the 'Korean New Deal,' "We are considering a National Infrastructure Fund, the 'New Deal Fund.'

At the plenary meeting of the National Assembly's Planning and Finance Committee on the same day, Hong responded to a question from Lee Kwang-jae, a member of the Democratic Party of Korea, saying, "(The New Deal Fund) can attract private investment, and since public institutions can also play a significant role, we will have them participate together."

Lee, chairman of the Digital New Deal subcommittee of the Democratic Party's K-New Deal Committee, had proposed on the 14th during a closed-door discussion at the Korean New Deal National Report Conference hosted by President Moon Jae-in at the Blue House that private funds should be actively utilized, including the establishment of a public participation fund to secure momentum for the Korean New Deal. The government is reportedly reviewing plans to establish a 'Digital and Green National Participation Infrastructure Fund.'

Regarding Lee's question about whether 100 trillion to 200 trillion won could be raised through the issuance of the New Deal Fund, Hong replied, "The key is that there must be more projects than conditions (such as returns)," adding, "The New Deal Fund must be created first, and productive projects where the fund can be invested must be visible."

On how to discover viable projects, he emphasized, "In addition to smart schools under the Korean New Deal, it is necessary to identify basic infrastructure and private investment projects."

When Lee requested, "The Ministry of Economy and Finance is reviewing a '14% return on 10 million won,' but if more citizens invest 10 million won, shouldn't the returns be higher? Please design the New Deal Fund so that it has both economic and social policy characteristics, allowing citizens to earn returns," Hong responded, "We will comprehensively review the guaranteed returns of the New Deal Fund from multiple perspectives to see if there are other choices."

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