Deputy Prime Minister Hong Nam-ki and Minister of Strategy and Finance said on the 23rd, “We will announce the recruitment of child funds at the end of this year so that the’policy-type New Deal Fund’ can start in earnest in March next year.”
Deputy Prime Minister Hong held a meeting of the Central Countermeasure Headquarters and New Deal Ministers’ Meeting at the Seoul Government Complex on the same day, saying, “We have been steadfastly working on a policy-type New Deal Fund with a goal of 20 trillion won by 2025 and 4 trillion won by 2021.” said.
He said, “We will create a policy-type New Deal Fund through government investment and private matching, but we will invest up to 30% of this in New Deal infrastructure.”
“The rest is through investment proposal funds that invest 50% or more in six core industries such as data, network, artificial intelligence (DNA), while investing in New Deal-related companies, mergers and acquisitions (M&A), and research and development (R&D). We plan to operate each growth fund that supports the company’s’scale up’.”
Deputy Prime Minister Hong also said, “In order to induce long-term and adventure investments by private capital and to prevent distraction, we will allow the fund management period to be extended for up to 20 years in areas that are necessary in addition to subordinated investment in finances.”
He said, “We will provide incentives such as raising the policy investment ratio by up to 45% and lowering the rate of return based on performance fees by up to 4%, depending on the investment need and risk.
In addition, he explained, “We will first create an indirect public offering fund for private equity with the participation of the general public at a scale of 140 billion won next year, and increase the percentage of subordinated investment in the finance to a maximum of 20% in order to actively induce public participation in this.”
(yunhap news)
