The South Korean government is going to raise a global infrastructure fund of US$200 million by 2022 in order to revitalize the overseas construction industry and provide more funds for medium-sized construction companies hesitating to go abroad for lack of funds.
The Ministry of Land, Infrastructure and Transport announced on Nov. 15 that the Korea Overseas Infrastructure and Urban Development Corp. (KIND), which was established in June this year, will provide support in every stage of infrastructure investment and development projects led by South Korean companies.
The US$200 million fund is divided into US$100 million for infrastructure development financing in the ASEAN region and India and the other half covering the CIS region, Russia, Eastern Europe and Mongolia. The fund will be invested mainly in traffic, energy, water resources and smart infrastructure for closer cooperation between South Korea and ASEAN member countries and Far East Asia and Eurasia development projects.
At the same time, the ministry is going to provide more assistance so that large and smaller corporations can penetrate overseas markets together with each other.
“Construction is characterized by requiring a variety of manpower, equipment and facilities for different processes, and this means collaboration between them is essential for more competitiveness in the global infrastructure market,” the ministry explained, adding, “In this regard, the KIND’s investment projects will be finalized within this year so they can prosper together and lead the era of Industry 4.0.”
From the beginning of this year to Nov. 15, South Korean builders clinched overseas construction contracts worth US$24 billion, up 11% from a year ago. The value is much smaller than that recorded eight years ago.