San-eun and Growth Finance Announce First Investment Project for 20 Trillion KRW Policy New Deal Fund

Announcement of a Plan to Raise 3 Trillion KRW at Regular Subscription Out of a Maximum Target Fund Size of 4 Trillion KRW
Establishment of Investment Proposal Funds, New Deal Growth Funds, New Deal Infrastructure Funds, etc.
Significant Deregulation of Fund Size, Investment Ratios, and Primary Investment Areas

[Asia Economy Reporter Kangwook Cho] Korea Development Bank and Korea Growth Investment Corporation announced on the 29th the public offering for the first year (2021) of the policy-type New Deal fund to support the success of the Korean New Deal.

The policy-type New Deal fund is planned to be raised up to 4 trillion KRW next year, with 3 trillion KRW to be raised through this public offering. The continuous offering will be conducted regularly next year, considering the results of this public offering and supplementing investment areas. Changes in the amount and ratio of policy investors' contributions and the scale of the fund are possible depending on investment demand and evaluation results.

This fund will supply venture capital to small and medium-sized enterprises, venture companies, and mid-sized companies related to 200 items in 40 fields under the New Deal investment guidelines. It will focus on six core New Deal industries including D.N.A. (Data, Network, AI), future cars, eco-friendly and green industries, and also support large-scale investments in New Deal infrastructure such as data centers and wind power generation.

In particular, a public participation fund will be introduced to share the performance of promising New Deal investments with the general public.

The public participation fund will be operated in collaboration with five partner companies (Golden Bridge Asset Management, Shinhan BNP Paribas Asset Management, IBK Asset Management, KB Asset Management, Hanwha Asset Management). After selecting sub-funds and consulting with distributors, the fund sales to the public are planned to start around March next year when a certain level of New Deal investment project pool is secured.

Additionally, project funds investing in individual New Deal-related companies and infrastructure projects will be raised throughout the year to promote prompt investment execution.

The proposal submission for this offering will close on January 26 next year, and asset managers will be selected by the end of February through a fair and swift evaluation process by sector.

This offering focuses on establishing a self-sustaining New Deal investment ecosystem led by the private sector through supplying venture capital to various New Deal fields. In particular, it greatly adopts a self-proposal method not only for fund size but also for contribution ratio and main investment areas to utilize private sector expertise and creativity. To encourage private investors' participation, various incentive measures such as subordinated support, excess profit transfer, and call option grants will be provided.

A Korea Development Bank official said, "The first offering for raising a 20 trillion KRW policy-type New Deal fund over the next five years has begun," adding, "We expect this fund to successfully promote the Korean New Deal, guide market liquidity into productive New Deal sectors, and provide an opportunity to share investment performance in New Deal fields with the public."

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