Sooeun, 1 Trillion Won Fund Established for Supply Chain Stabilization Investment
Supply Chain Stabilization Fund Participates in First Fundraising
On the 12th, the Export-Import Bank of Korea (KEXIM) announced that it will establish a fund focused on stabilizing supply chains for economic security in collaboration with the Supply Chain Stabilization Fund. This is the first time the Supply Chain Stabilization Fund is participating in creating such a fund.
The total investment amounts to 200 billion KRW, with KEXIM and the Supply Chain Stabilization Fund each contributing 100 billion KRW. Additionally, private capital will be raised to create a fund totaling approximately 1 trillion KRW.
Through this investment project, KEXIM plans to encourage private-led investments in key projects aimed at stabilizing supply chains, thereby contributing to strengthening economic security and supporting the acquisition of proactive crisis response capabilities.
KEXIM intends to provide incentives to fund managers by paying a portion of the profits attributable to KEXIM based on the performance of companies invested in by the fund that have been designated by the government as ‘Supply Chain Stabilization Leading Operators.’
The purpose is to promote investment in leading operators who pursue projects such as diversifying import sources for key items, expanding domestic manufacturing capabilities, and developing import substitution technologies, thereby facilitating the stabilization of supply and demand in supply chains.
KEXIM’s investment project will be structured into large-scale and small-to-medium-scale categories according to fund size to ease competition between small-to-medium and large fund managers. The investment project will be announced on KEXIM’s website on the same day, and after selecting fund managers and completing internal procedures, the fund is expected to be established by the first half of next year.
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A KEXIM official stated, “Through this investment project, we aim to support the whole-of-government policy for supply chain stabilization by inducing private investment in core industries critical to economic security.”
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