Spreading the Wealth
The Export-Import Bank of Korea (Korea Eximbank) has successfully raised a “Global Energy & Infra Fund” worth a total of 132.5 billion won (US$121.39 million).
Previously, Korea Eximbank invested 92.5 billion won (US$84.75 million) in a total of five private equity funds in three sectors last year as an anchor investor, including global energy, infrastructure, the overseas expansion of small and medium-sized companies, and the export of medical services. It also raised additional funds worth a total of 770 billion won (US$705.45 million).
The bank invested 30 billion won (US$27.49 million), which is 23 percent of the total amount, in energy and infrastructure funds worth 132.5 billion won (US$121.39 million).
With the remaining 102.5 billion won (US$93.91 million), private financial institutions such as Shinhan Bank and Korea Investment & Securities, and mutual aid associations such as the Korea Scientists and Engineers Mutual-aid Association and the Military Mutual Aid Association co-invested about 20 billion (US$18.32 million) and 30 billion won (US$27.49 million), respectively.
As the anchor investor of the funds, Korea Eximbank created great leverage effects on the overseas market expansion of Korean businesses with limited policy funds resources, and induced the joint overseas expansion of private domestic funds at the same time.
The funds related to overseas energy and infrastructure generally struggle to raise money from domestic institutional investors.
The energy and infrastructure funds are scheduled to invest focusing on quota participation of the domestic businesses, introduction of key resources into the country, and overseas energy infrastructure projects, including the participation in constructing and managing the infrastructure and export of major materials.