GS Construction Subsidiary Jibesco Asset Management Raises 100 Billion KRW Blind Fund

At the ‘Jibesco Opportunity Pursuit Specialized Private Real Estate Fund No. 1’ signing ceremony held at the GS Construction headquarters on the 17th, attendees are taking a commemorative photo. From the left: Han Taehee, CEO of Jibesco Asset Management; Eom Gwansuk, CEO of Xi S&D; Heo Yunhong, Head of New Business Division at GS Construction; Shim Woo-geun, Vice Chairman of the Military Mutual Aid Association; Kim Wonkyu, CEO of Ebest Securities; Lee Gukhyeong, CEO of Korea Investment Real Estate Trust. (Provided by GS Construction)

[Asia Economy Reporter Kim Hyemin] GS Construction's subsidiary, Jibesco Asset Management, has successfully raised a 100 billion KRW blind fund.

On the 17th, GS Construction announced that it held a subscription ceremony for the blind fund 'Jibesco Opportunity-Seeking Private Real Estate Fund No. 1' at the GS Construction headquarters in Gran Seoul, Jongno-gu, Seoul. The event was attended by Heo Yunhong, Head of the New Business Division, and Shim Woo-geun, Vice Chairman (CIO) of the Military Mutual Aid Association.

A blind fund is a fund that raises capital without pre-selecting investment targets. Of the 100 billion KRW, 80 billion KRW was raised from external institutional investors, with the Military Mutual Aid Association investing the largest amount of 40 billion KRW.

This blind fund is structured in a tiered manner. Class 1 beneficiary certificates are invested by financial investors (FI), including 40 billion KRW from the Military Mutual Aid Association, totaling 70 billion KRW. Class 2 beneficiary certificates are contributed by strategic investors (SI) with 30 billion KRW, including 3 billion KRW from GS Construction, 17 billion KRW from JSND, and 10 billion KRW from Ebest Investment & Securities.

Through the blind fund, Jibesco plans to undertake residential and architectural development projects in key locations within the metropolitan area, six major metropolitan cities, and regional hub cities. As an active developer rather than a simple investor, it will integrate GS Construction's product planning, construction, and project management capabilities to maximize profits.

Heo Yunhong, CEO, stated, "Jibesco, which will manage the fund, will proceed with real estate development projects stably as a developer through the participation of GS Construction and JSND, which have extensive development experience, and Ebest Investment & Securities, which will provide financial advisory roles. We will continue to discover good business opportunities and attract institutional investors to further strengthen our capabilities as a developer."