Up to 30% invested in New Deal infrastructure
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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 from March next year.” The government plans to raise 4 trillion won in 2021 and a total of 20 trillion won by 2025.
Deputy Prime Minister Hong said at the Emergency Economy Central Countermeasure Headquarters and New Deal Ministers’ Meeting held at the Seoul Government Complex on the same day, “To create a policy-type New Deal Fund through government investment and private matching, up to 30% (10-30%) of the New Deal Infrastructure I will invest in.” He then invested the rest (70-90%) in New Deal-related companies, but invested more than 50% in the six core industries such as data, network and artificial intelligence (DNA), and investment proposal funds, mergers and acquisitions (M&A), and research and development ( We plan to operate each growth fund that supports corporate scale-up through R&D).”
In order to induce long-term and adventure investment of private capital and to prevent distraction, it was decided to allow the fund management period to be extended up to 20 years (normally 7 to 8 years) in areas that are necessary in addition to subordinated investment in the finances. In addition, it plans to provide incentives such as raising the policy investment ratio to a maximum of 45% (average 35%) and lowering the standard rate of return for payment of performance fees to a maximum of 4% (normally 7%) depending on the need for investment and risk.
Deputy Prime Minister Hong said, “The private equity indirect public offering fund in which the general public participated will be created with a scale of 140 billion won next year, and in this regard, we will increase the subordinated investment rate of the finance to a maximum of 20% (average 10%) in order to actively induce public participation. I said.
/ Sejong = Reporter Hwang Jeong-won [email protected]
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