Korea Development Bank Finalizes Selection of 26 Asset Managers for Growth Finance Policy New Deal Fund

Prompt formation and investment execution aimed at 3 trillion KRW in regular admissions

[Asia Economy Reporter Park Sun-mi] According to the results of the 2021 regular selection of entrusted fund managers for the Policy-type New Deal Fund by Korea Development Bank and Korea Growth Investment Corporation, a total of 26 companies were finally selected, overcoming a competition rate of 3.2 to 1.

By support sector, there are 11 companies in the investment proposal type, 3 companies in the New Deal growth type, 9 companies in the public participation type, and 3 companies in infrastructure, totaling 26 companies with a scale of 3 trillion KRW. All 40 sectors under the New Deal investment guidelines were selected, and investments are expected to be made across all sectors. Looking in detail at the 40 sectors, the digital sector such as intelligent data analysis accounts for about 77%, and the green sector such as eco-friendly consumer goods accounts for about 23% of the selection.

This investment project allowed fund managers to autonomously propose major investment conditions such as investment sectors and fund size, and provided various incentives to encourage participation from private investors. In addition, while utilizing the expertise and creativity of the private sector, the evaluation also reflected policy alignment with the 'Korean New Deal' to ensure that venture capital could be supplied to various New Deal sectors.

In particular, among the six core New Deal industries, three companies were selected in the Green New Deal 'eco-friendly and green industries,' which had been evaluated as somewhat lacking in private investment, thereby further expanding the scope of investment in productive sectors compared to before.

An official from Korea Development Bank stated, “We will spare no support, including early formation incentives, so that the selected fund managers can promptly form funds and start investing in New Deal sectors.” He added, “Additionally, a supplementary irregular investment project to complement the regular investment project is planned to proceed with a scale of 1 trillion KRW in March.”