Military Mutual Aid Association, 2.1 Trillion KRW New Investment in Real Estate and Alternative Investments

[Asia Economy Reporter Park So-yeon] The Military Mutual Aid Association plans to make approximately 2 trillion KRW in new investments this year, focusing on real estate and alternative investments.

According to the financial investment industry on the 27th, the Military Mutual Aid Association approved the 2021 business plan and budget allocation at the 105th General Assembly held at the end of last year, setting the total new investment for this year at 2.1 trillion KRW. By business sector, 100 billion KRW was allocated to bonds, and 1 trillion KRW each to real estate and alternative investments.

For stock management, in preparation for sudden losses due to increased market volatility, the association plans to build a portfolio expected to generate stable returns, including high-dividend stocks, infrastructure, REITs, and dividend-type ETFs. No new stock investments will be made; instead, funds recovered from existing investments will be reinvested timely to prepare for short-term market downturns.

New bond investments will be slightly increased (100 billion KRW), and timely reinvestment upon fund recovery will be made to build a portfolio expected to generate stable returns, including domestic and foreign high-quality corporate bonds, hybrid capital securities, and bonds issued by global companies.

In real estate and alternative investments, 1 trillion KRW each will be newly invested to expand investments in high-quality tangible assets and new growth businesses. Plans include investing in high-quality domestic and international tangible real estate, social overhead capital sectors such as the Korean New Deal, and new growth industries such as bio, ICT, and renewable energy.

First, approximately 120 billion KRW will be contributed to blind funds this year. The blind fund managers are expected to be selected around May.

The association also plans to manage investment assets totaling 9.2 trillion KRW this year, including existing investments, aiming to achieve approximately 310 billion KRW in business profits.

Regarding the member housing project, the association plans to sell member apartments in Paju Unjeong New Town District 3 by the end of this year. It also plans to actively pursue additional private land acquisitions in Wirye New Town and the 3rd New Town public land areas.

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