San-eun and Growth Finance Announce 2022 Policy New Deal Fund 1st Investment Project Notice

Selected 14 Asset Management Companies
Creating a New Deal Fund Worth 2.8 Trillion Won Using 1 Trillion Won in Policy Funds as Seed Money

[Asia Economy Reporter Park Sun-mi] The Korea Development Bank and Growth Finance announced on the 6th that they will announce the first policy-type New Deal fund investment project of 2022 on the 7th to support the success of the Korean New Deal.

The 2021 New Deal fund, using policy funds as seed money, raised 5.6 trillion KRW, exceeding the target of 4 trillion KRW, successfully attracting private capital participation and laying the foundation for supporting future core industries (digital and green).

The policy-type New Deal fund aims to raise 4 trillion KRW this year, and through this first project, it will match 1 trillion KRW of policy funds with 1.8 trillion KRW of private funds to initially raise a fund worth 2.8 trillion KRW. The number of selected management companies will be 14 based on blind funds, increasing the scale per fund compared to last year to improve operational efficiency, while focusing on supporting the scale-up of New Deal sector companies.

This first investment project emphasizes reflecting market opinions and policy demands considering the latest trends in the digital and green sectors. By revising the New Deal investment joint standards to reflect the green taxonomy contents such as zero-carbon gas power generation and the latest industrial trends like metaverse and nucleic acid-based vaccines, it encourages the supply of venture capital to related small and venture companies. It also prioritizes selecting management companies in the carbon-neutral and eco-friendly sectors, which are expected to grow significantly worldwide and require policy support, thereby laying the foundation for funding necessary for the transition to a low-carbon economy.

Furthermore, to induce the advancement of the domestic investment market by expanding the base of ESG investment, the ESG investment capabilities of management companies will be considered during evaluation, and incentives will be provided to encourage the prompt formation and investment of New Deal funds.

The proposal submission deadline for this investment project is March 3rd, and management companies will be selected in March through a fair and prompt evaluation process by sector.

A Korea Development Bank official stated, “After this first project, a second investment project worth 1.2 trillion KRW will be conducted in April,” adding, “The second project will focus on regional investment activation, virtuous cycle of the venture capital ecosystem, and infrastructure support, along with the participation of private lead institutions.” Also, “We plan to establish a performance-based operational culture for policy funds through systematic evaluation and management based on the performance of each management company in the future.”

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