Korea Development Bank Receives Applications from 50 Asset Management Firms for Policy-Type New Deal Fund

50 Fund Managers Applied for the First 2022 Investment Project, Recording a 3.6 to 1 Competition Rate
Strong Market Interest Driven by Reflecting Policy Demand and Offering Various Incentives

[Asia Economy Reporter Song Hwajeong] Korea Development Bank and Korea Growth Investment Corporation announced on the 8th that 50 asset management companies applied by February 3rd for the submission of proposals from asset management companies according to the '2022 1st Policy New Deal Fund Delegated Asset Manager Selection Plan' announced on the 7th of last month.

A total of 50 asset management companies (KRW 7.17 trillion) applied for the recruitment of 14 asset management companies (KRW 2.58 trillion), showing a competition rate of 3.6 to 1, which is somewhat higher than the 3.2 to 1 competition rate in the first recruitment in 2021. Of the KRW 2.81 trillion in the first recruitment in 2022, KRW 2.58 trillion is based on blind funds (corporate investment), and KRW 230 billion for project funds is currently being recruited on an ongoing basis.

In the carbon neutrality sector, which is the priority selection category, 17 asset management companies applied, confirming steady investment demand across the New Deal sectors. A Korea Development Bank official explained, "This market interest is interpreted as a result of balanced reflection of policy demand and market opinions by providing various incentives such as expansion of policy support in the carbon neutrality sector, scaling up fund size, expanding investment items, preferential selection for early formation, and reinforcement of subordinated finance."

The Korea Development Bank and Korea Growth Investment Corporation, the lead institutions of the New Deal Fund, plan to fairly and transparently select 14 asset management companies by March, and by successfully raising a KRW 4 trillion scale New Deal Fund within the year, they aim to support the successful promotion of the Korean New Deal.

A Korea Development Bank official stated, "As in 2021, interest and demand for digital and green industries remain high in the market, so we expect prompt fund formation through smooth matching of private investment funds," adding, "As the lead institutions of the New Deal Fund, we will also thoroughly manage the formed funds and delegated asset managers."

The 2021 policy-type New Deal Fund formed KRW 5.6 trillion as of the end of 2021, exceeding the formation target of KRW 4 trillion by about 40%. With a smooth start, including investing KRW 500 billion in 102 small and medium-sized enterprises as of the end of 2021, Korea Development Bank plans to actively supply venture capital to the future core industries of digital and green sectors starting this year.

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