KB Financial Group Forms New Deal Infrastructure Fund Worth 200 Billion KRW

Investment in New Deal Infrastructure such as Renewable Energy, Environmental Facilities, Electric Vehicle and Hydrogen Car Charging Stations

[Asia Economy Reporter Park Sun-mi] KB Financial Group announced on the 1st that it has launched and begun managing a policy-type New Deal infrastructure fund worth 200 billion KRW, the ‘KB New Deal Infrastructure Specialized Private Investment Trust.’

The ‘KB New Deal Infrastructure Fund’ is a blind fund that invests broadly in New Deal infrastructure sectors, including renewable energy power generation projects, environmental facilities, electric vehicle and hydrogen vehicle charging stations. KB Financial is promoting support for the Korean New Deal with a target of 10 trillion KRW by 2025, and as of the end of April, it has achieved 2.5 trillion KRW out of this year’s goal of 3.2 trillion KRW, recording a 78% achievement rate. Based on the launch and investment of the ‘KB New Deal Infrastructure Fund,’ the group plans to further concentrate its capabilities on the ‘Korean New Deal’ policy.

KB Asset Management participated in the bidding for the entrusted management company selection of the ‘2021 Policy-type New Deal Fund (Infrastructure)’ promoted by Korea Growth Finance and the Korea Development Bank on December 29 last year. Based on collaboration with KB Kookmin Bank, it was recognized for its differentiated investment strategy and excellent investment performance and was selected as the entrusted management company on February 26. Including the anchor investor KB Kookmin Bank, KB Financial Group invested a total of 103.1 billion KRW through KB Insurance, KB Life Insurance, Prudential Life Insurance, and KB Asset Management. Policy funds were invested by Korea Growth Finance and the Korea Development Bank with 36.9 billion KRW, and two major domestic insurance companies invested 60 billion KRW, completing the recruitment with a total of 200 billion KRW.

A KB Financial official said, “We are providing group-level support, including investment participation from group affiliates, to successfully establish the New Deal Infrastructure Fund,” and added, “Based on the leadership accumulated in the renewable energy and environmental facility investment markets, we will play a pioneering role in revitalizing New Deal projects.”

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