President Moon: "20 Trillion Won New Deal Fund Over 5 Years, 170 Trillion Won New Deal Finance" (Comprehensive)

President Moon presides over the 1st Korean New Deal Strategy Meeting... "Abundant market liquidity shifts from real estate to the production sector"

[Asia Economy reporters Ryu Jeong-min and Kim Dong-pyo] The government is set to raise policy funds amounting to 190 trillion won over five years to secure resources for the Korean New Deal. The main content includes the 'New Deal Finance' plan aiming to supply 170 trillion won, consisting of 100 trillion won in policy finance and 70 trillion won in private finance, along with inducing 20 trillion won in private sector investment.

On the 3rd, President Moon Jae-in presided over the '1st Korean New Deal Strategy Meeting' at the Blue House. To promote the Korean New Deal, plans to establish three types of New Deal funds?policy-type New Deal fund, infrastructure fund, and private New Deal fund?along with supply plans for funds from policy financial institutions and the private financial sector were discussed.

First, the government decided to establish a 20 trillion won policy-type New Deal fund to discover and invest in Korean New Deal projects and companies. The public sector will contribute 7 trillion won from 2021 to 2025 to form a mother fund, which will serve as seed money to match private funds.

[Image source=Yonhap News]

The Blue House explained, "General public participation is possible in the policy-type New Deal fund, and through contributions from the government and policy financial institutions, it is expected to become a long-term and stable investment destination."

Policy financial institutions such as the Korea Development Bank, Industrial Bank of Korea, Export-Import Bank of Korea, and Korea Credit Guarantee Fund will supply 100 trillion won through special loans and guarantees to strengthen the competitiveness of New Deal companies.

Additionally, the five major financial holding companies?Shinhan, KB, NongHyup, Hana, and Woori?will supply 70 trillion won over the next five years for loans and investments in digital and New Deal-related businesses and companies. President Moon evaluated, "It is also significant in terms of moving abundant liquidity in the market from unproductive sectors like real estate to productive sectors."

[Image source=Yonhap News]

Major institutions conveyed specific implementation plans related to supporting Korean New Deal finance. First, the Korea Exchange announced plans to develop the 'K-New Deal Index (September)' and the 'Carbon Efficiency Green New Deal Index (October),' composed of Korean New Deal-related industry stocks. If exchange-traded funds (ETFs) linked to these indices are created, the general public will have opportunities to diversify investments in New Deal companies with small amounts of investment.

Samsung Active Asset Management plans to launch the 'Samsung New Deal Korea Fund' early this month, the first private fund of its kind. NH Financial Group will follow the success of the 'Winning Korea' fund investing in materials, parts, and equipment companies by launching its own public offering fund product, the 'Green Korea' New Deal fund.

President Moon said, "I appreciate the financial sector taking the lead on the path of the Korean New Deal for Korea's great transformation," and urged, "Please make every effort to ensure that the plans and ideas discussed at today's meeting can be realized quickly."

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