Gov’t seeks bigger role in Korean firms’ overseas infrastructure projects

[THE INVESTOR] The government will raise an additional 100 billion won (US$ 85.7 million) to help Korean construction firms take on infrastructure projects abroad.

Only July 6, the Ministry of Land, Infrastructure and Transport and the Korea Development Bank signed an agreement for establishing the third Global Infrastructure Fund. The fund is used to invest in overseas infrastructure projects conducted by local construction companies. 

The ministry said that as GIF1 and GIF2 are likely to be depleted over the next couple of years, GIF1 will be combined with GIF3. GIF1 currently has 100 billion won remaining, and GIF3 is to have a total of 200 billion won, matching GIF2 in scale.

In addition, the ministry will aid local builders find and bid for overseas projects, while the KDB will provide financial consultations and act as an agent for attracting financial investors.

By Choi He-suk (cheesuk@heraldcorp.com)