San-eun and Growth Finance Establish 500 Billion KRW SoBuJang Fund... Announcement of Investment Project
Raising Over 500 Billion KRW Fund Through 270 Billion KRW Investment in Fiscal and Policy Funds
[Asia Economy Reporter Park Sun-mi] Korea Development Bank and Korea Growth Investment Corporation announced on the 2nd the launch of the second investment fund dedicated to the materials, parts, and equipment (MPE) sector to support the MPE industry.
The second project plans to raise over KRW 500 billion, divided into a blind fund (KRW 300 billion) and a project fund (KRW 200 billion), using KRW 270 billion of fiscal and policy capital as seed money. This fund, following the first project last year, is established to support the MPE industry, with an expanded entrusted scale and the addition of the semiconductor sector as a new feature. The first project last year aimed to raise KRW 400 billion with KRW 220 billion of fiscal and policy capital as seed money, and as of the end of February this year, it raised KRW 620 billion and invested KRW 313.7 billion.
Among the blind funds, one fund will be established as a KRW 100 billion semiconductor-dedicated MPE fund with designated investors SK Hynix and the Export-Import Bank of Korea participating under an industry-finance agreement. Additionally, the fund will support the cultivation of the 'Big 3' industries?system semiconductors, future vehicles, and bio-health?by providing incentives to fund managers investing in MPE companies handling these items, which are part of the innovation growth joint standards. To encourage private investors' participation, the policy capital ratio has been increased, and various incentives such as subordinated reinforcement and excess profit transfer will be offered to private investors.
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The proposal submission for this investment project will close on the 21st, and fund managers will be selected by the end of May through a fair and prompt review process by sector. A Korea Development Bank official stated, "When selecting entrusted fund managers, we will evaluate the investment expertise of the management personnel in the MPE sector to select fund managers that align with the purpose of establishing MPE funds. This will contribute to promoting self-reliance through strengthening MPE competitiveness and expanding global supply chains, advancing Korea as a global MPE powerhouse."
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