Developing Overseas Infrastructure
The Ministry of Land, Infrastructure and Transport (MOLIT) said on June 25 that it will announce its plan to recruit a management company for “Global Infra Venture Fund” and accept application starting from June 26.
Global Infra Venture Fund helps domestic companies to push into the global construction market by making investment in the development of foreign infrastructure projects which costs a lot of money.
The MOLIT plans to raise money from the government and policy finance institutions and create fund worth 100 billion won (US$87.71 million) by 2018. It will also invest up to 5 billion won (US$4.41 million) in each foreign infrastructure project which is in the development stage before domestic companies win the deal. The ministry will post an advertisement for recruitment of asset management company and receive applications until July 11. It will select a company after comprehensively reviewing its expertise in investment, management performance, fund investment strategy and expert workforce for foreign infrastructure development projects.
An official from the MOLIT said, “The creation of Global Infra Venture Fund will expand an opportunity of domestic construction companies to enter the global infrastructure market and activate the venture investment in the infrastructure sector, which has shown insignificance in South Korea. The foreign infrastructure development is attracting attention as an important alternative investment outlet in the future. So, many asset management companies will be more interested in Global Infra Venture Fund.”