Woori Asset Management Launches 223 Billion Won “Productive Finance Educational Infrastructure Fund No. 2”

Tongyang Life Insurance Makes Its First Anchor Investment After Joining the Group

Woori Asset Management announced on April 23 that it has established the “Woori Productive Finance Educational Infrastructure Private Equity Fund No. 2 (Blind Fund),” which aims to upgrade aging facilities at national universities in Korea with smart and eco-friendly infrastructure.

According to Woori Asset Management, the fund has been created with a total scale of 223 billion won. Tongyang Life Insurance and Kyobo Life Insurance participated as anchor investors. Notably, this marks the first time Tongyang Life Insurance has served as an anchor investor in an alternative investment fund within the Woori Financial Group since becoming an affiliate of the group.

The fund’s most distinctive feature is its stable income structure, which secures both public value and profitability. Woori Asset Management designed this fund as a “perpetual closed-end fund” with no maturity and no redemption, taking into account the asset management strategies of insurance companies, which require long-term asset stability. This structure allows investors to classify valuation gains and losses as other comprehensive income (FV-OCI), minimizing accounting profit and loss volatility. Through this solution, Tongyang Life Insurance has secured real income stability and further strengthened its own portfolio.

Operational stability is also a key strength. The fund invests in Build-Transfer-Lease (BTL) projects, ensuring stable cash flows with facility rental fees and operation costs received quarterly from the relevant government authorities. In addition, any loans incurred during the construction period are managed through guarantees provided by the Korea Infrastructure Credit Guarantee Fund, which mitigates risk.

The raised capital will be allocated to major national universities that serve as hubs for nurturing future talent in advanced industries, including Seoul National University of Science and Technology (Hi-Tech Building and Smart Technology Hall), Kongju National University, Chonbuk National University, and Gwangju National University of Education, for facility improvement projects.

This fund is part of the government’s key policy on “productive finance.” By improving the facilities of regional national universities, it proactively addresses the risk of local extinction and contributes to revitalizing local economies and creating high-quality jobs, thereby holding significant public value.

Kim Seungbin, Head of Alternative Infrastructure Investment Team 2 at Woori Asset Management, stated, “This fund is especially meaningful as it represents Tongyang Life Insurance’s first step as an anchor investor in the alternative investment market since joining Woori Financial Group. We aim to achieve both stable returns and the public goal of improving educational infrastructure through sophisticated solutions tailored to the needs of insurance company investors.”

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