The South Korean government will recruit sub-funds for the 20 trillion won ($18 billion) worth policy fund it plans to create by 2025 for new economic growth through digital and green initiatives.
Of the 20 trillion won, the government will create 4 trillion won policy fund next year with an aim to launch the first fund of funds worth 140 billion won in March, said Hong Nam-ki, deputy prime minister for economy, at a ministerial meeting on Wednesday.
The policy fund, for which the government will contribute with matching funds from the private sector, will spend up to 30 percent on investment in the New Deal related infrastructures. The rest will be invested in New Deal related businesses, especially in six core sectors such as big data, network and artificial intelligence technologies.
The Korean government in July announced the New Deal initiative that packages economic, environmental, and social reforms to prop-up the coronavirus-hit economy. It is mainly divided into two polices of digital and green.
To encourage the private sector’s investment in the policy fund, the government plans to extend the fund’s operation period to up to 20 years. Also, the government will contribute as much as 45 percent in projects, depending on the needs and involved risks, and offer higher incentives.
[? Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]