This Year, a 34 Billion KRW National Land and Transport Innovation Fund Established... Doubled Compared to Last Year

Recruitment of Sub-Fund Managers for the 2nd and 3rd National Land and Transport Innovation Funds Until the 31st of Next Month

[Image source=Yonhap News]

[Asia Economy Reporter Kangwook Cho] The investment scale of the policy fund ‘Land, Infrastructure and Transport Innovation Fund,’ which invests in innovative small and venture companies in the land, infrastructure, and transport sector, will double to 34 billion KRW this year.

The Ministry of Land, Infrastructure and Transport announced on the 24th that it will start a business announcement to recruit private fund managers for the 2nd and 3rd sub-funds of the Land, Infrastructure and Transport Innovation Fund until the 31st of next month.

This fund was newly established last year as the first fund within the Korea Fund of Funds to promote promising industries in the land, infrastructure, and transport sector. This year, an additional sub-fund will be raised with a scale of 34 billion KRW (20 billion KRW from the government, at least 14 billion KRW from the private sector), doubling last year’s amount, to expand investments in innovative and technological small and venture companies.

In particular, to make the support effects more visible this time, the main investment targets will be divided into general fields, which are the same as the 1st fund established last year, and specialized fields focusing on six key investment areas with high growth potential. Two sub-funds, each with a scale of 17 billion KRW, will be operated accordingly.

In the general field, small and venture companies that possess or aim to develop and commercialize technologies in the land, infrastructure, and transport sector or related industries will be supported. In the specialized fields, small and venture companies that possess or aim to develop and commercialize technologies in drones, smart logistics, autonomous vehicles, smart cities, smart construction (including digital engineering, architectural BIM, etc.), and green remodeling will be supported.

The 1st sub-fund of the Land, Infrastructure and Transport Innovation Fund (‘Pathfinder Land, Infrastructure and Transport Innovation Investment Association,’ with a scale of 17 billion KRW), formed in September last year, has invested 4.6 billion KRW in four small and venture companies so far, including Autocrypt (autonomous driving security), Tuneit (smart mobility), Koses GT (vehicle display), and DAIo (memory semiconductors), according to the Ministry of Land, Infrastructure and Transport.

Oh Gong-myeong, head of the Corporate Growth Support Team at the Ministry of Land, Infrastructure and Transport, said, “There is high market interest in investments in the land, infrastructure, and transport sector, and we hope that excellent fund managers will participate to continue investing in innovative and technological small and venture companies in digital and green new deals.” He emphasized, “Despite the deteriorated business environment due to the recent COVID-19 situation, we plan to provide policy support and do our best so that excellent innovative companies in the land, infrastructure, and transport sector can continue to grow.”