KOFIA Welcomes Passage of Public Infrastructure Fund Revitalization Bill by Strategy and Finance Committee

On December 9, the Korea Financial Investment Association expressed its welcome and expectations regarding the passage of the amendment to the "Act on Private Investment in Infrastructure" by the National Assembly's Strategy and Finance Committee, which includes measures to revitalize public infrastructure funds.

The association explained, "This is the first time in 30 years since the enactment of the Private Investment Act in 1994 that an amendment procedure related to asset management has been carried out," and added, "It is significant as it reflects the active acceptance by the National Assembly and government authorities of market voices pointing out that the law has not kept pace with the changing financial environment."

Public infrastructure funds are a representative productive financial instrument that invests in national infrastructure. If the bill passes the National Assembly in its final stage, efficiency in fundraising and management is expected to improve through measures such as increasing the borrowing limit (from 30% to 100%), improving management regulations, and enabling long-term stable management. The association also expects an increase in investment demand for infrastructure funds. Since public infrastructure funds can be invested in using personal and retirement pension assets, they are also expected to contribute to the formation of national assets and retirement funds.

Suh Yooseok, Chairman of the Korea Financial Investment Association, stated, "At a time when the prompt establishment of infrastructure for strategic industries determines national competitiveness, the efforts of the National Assembly and the government have deepened the way the financial investment industry supplies productive finance."

He added, "We will actively support the continuous emergence of excellent public infrastructure funds so that citizens can directly participate in social infrastructure investment and also enjoy the returns, thereby solidifying a virtuous cycle structure."

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