The Democratic Party Accelerates 'New Deal Fund' Initiative: "Providing Stable Income Sources for the People"

[Image source=Yonhap News]

[Asia Economy Reporter Kang Nahum] The Democratic Party's Future Transformation K-New Deal Committee held its first on-site policy meeting at the Korea Exchange Seoul Office on the 5th, officially beginning efforts to promote the 'New Deal Fund.'

Lee Hae-chan, leader of the Democratic Party, stated at the meeting, "The core task of the New Deal Fund is to create conditions and an environment where liquid funds can be invested in productive areas," adding, "The government is devising various measures to create good investment destinations for market funds, alleviate asset bubbles, and ensure that funds flow into productive sectors."

Cho Jung-sik, chairman of the Democratic Party Policy Committee, also said, "The New Deal Fund will have the effect of guiding investments toward future-oriented core businesses," and "It will provide stable returns to citizens who cannot find suitable investment destinations due to long-term ultra-low interest rates."

At the meeting, Choi Young-kwon, CEO of Woori Asset Management, proposed 'Colocation Data Center Infrastructure Fund' and '5G Network Joint Infrastructure Fund by the Three Telecom Companies' as investment targets for the Digital New Deal Fund. Yoon Tae-hwan, CEO of Root Energy, emphasized targeting the domestic renewable energy market and resolving low regional acceptance related to the Green New Deal.

The Democratic Party plans to draft various support measures for the successful establishment of the New Deal Fund, including tax benefits, separate taxation with a limit of 100 million won, and deregulation of infrastructure funds. However, details such as which tax incentives will be provided, fund holding periods, and rates of return have not been finalized. The meeting also discussed measures to guarantee investors a return of government bond yields plus alpha (α).

Hong Sung-guk, head of the Digital Subcommittee Execution Support TF of the K-New Deal Committee, said in a briefing after the meeting, "The meeting was a process to gather opinions on how the industry thinks, and the Democratic Party plans to actively review the discussion contents."