KB Asset Management's 'Balhae Infrastructure' with Annual Dividend Yield of Around 7% to be Listed on KOSPI on the 29th

KB Asset Management's flagship infrastructure fund, 'Balhae Infrastructure Investment Company,' will be listed on the KOSPI market on the 29th.

As Korea's first native public infrastructure fund, 'KB Balhae Infrastructure' primarily invests in social overhead capital (SOC) such as toll roads, tunnels, and railroads. Currently, it distributes operating income from premium toll road assets used by approximately 108 million vehicles annually, including the △Daegu-Busan Expressway △Namyangju Suseok-Hopyeong Road △Seoul Yongma Tunnel △Busan Sanseong Tunnel △Suwon Outer Ring (Northern) Road.

The private investment projects mainly targeted by 'KB Balhae Infrastructure' are characterized by securing high profitability and stability even in volatile market conditions. According to agreements with the government, the toll revenue for each asset reflects changes in the consumer price index, ensuring profitability even during inflationary periods. Additionally, the borrowing limit ratio for the infrastructure fund is capped at 30% of the capital, reducing operational risks from sudden interest rate fluctuations.

The attractive dividend yield during the low-interest-rate environment is also noteworthy. Based on the securities registration statement, the cumulative dividend yield of 'KB Balhae Infrastructure' since its inception is 6.99% per annum, with an expected dividend yield of about 7.7% annually over the next three years. Since the dividend payment recipients are confirmed according to the year-end settlement, public investors who hold the shares for one month until the end of this year can receive the same semi-annual dividends as existing shareholders.

The government has announced policies to strengthen incentives for public infrastructure funds, and public infrastructure funds will be added as investment targets for individual pension savings accounts. Infrastructure funds can be purchased through securities firms' trust accounts like stocks and offer tax benefits through retirement pensions, IRP (Individual Retirement Pension), and ISA (Individual Savings Account). Moreover, individual investors purchasing infrastructure funds through dedicated accounts for collective investment schemes can receive a separate tax benefit of 15.4% on dividend income up to a limit of 100 million KRW.

Kim Hyung-yoon, Head of Alternative Investments at KB Asset Management, said, "'KB Balhae Infrastructure' is a product that provides stable and high dividend income in the recent market environment with increased volatility. If held until the end of the year, investors can receive a semi-annual dividend of about 325 KRW per share, the same as existing shareholders. The dividend resolution details will be disclosed two weeks before the dividend record dates (end of June and December), allowing investors to confirm the dividend income level before investing."