Industrial Infrastructure Credit Guarantee Fund Expands Guarantee Limit to 700 Billion Won

GTX and Dongbu Expressway Underground Project: Active Support Planned for Large-Scale Private Investment Projects

Expected to Serve as a Safety Net Amid Recent Expansion of Private Market Risks

[Asia Economy Reporter Sim Nayoung] The Industrial Infrastructure Credit Guarantee Fund announced that it will expand the maximum credit guarantee limit per project from 500 billion KRW to 700 billion KRW to facilitate smooth financing of large-scale private investment projects.

The government held a Cabinet meeting on the 25th of last month and approved the amendment to the "Enforcement Decree of the Act on Private Investment in Social Overhead Capital," which includes this provision, and it came into effect on the 1st of this month.

There has been a continuous need to raise the guarantee support limit due to the increase in total project costs caused by the incorporation of advanced technology in private investment projects and rising raw material prices. Recently, risks such as interest rate hikes, inflation, and the possibility of PF defaults have expanded, emphasizing the role of the Industrial Infrastructure Credit Guarantee Fund as a "safety net" for private investment projects. Accordingly, the government decided to expand the guarantee limit to alleviate fiscal burdens and reduce financial costs for project implementers.

The Industrial Infrastructure Credit Guarantee Fund is a public fund established under Article 30 of the "Act on Private Investment in Social Overhead Capital" to facilitate smooth financing of private investment funds for the expansion and operation of social overhead capital, and it is managed by the Korea Credit Guarantee Fund.

Since beginning operations in 1995, the Industrial Infrastructure Credit Guarantee Fund has supported guarantees totaling 34 trillion KRW for 241 major projects including the ‘Sudogwon Outer Ring Road’, ‘Shinbundang Line’, and ‘Busan New Port’. In particular, this year, it has participated in various private investment projects such as the ‘Seoul Arena Project’ for expanding K-Culture complex cultural facilities, providing support amounting to 1.6 trillion KRW to date.

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