The Korean government and government-owned financial institutions will jointly create an 85 billion-won global infrastructure development fund(“Global Infrastructure Venture Fund(GIVF)”) to support Korean companies’ participation in global infrastructure development projects.

The Export-Import Bank of Korea (“Korea Eximbank”), the Ministry of Land, Infrastructure and Transportation(“MOLIT”) and Korea Development Bank(“KDB”) signed an MOU to share contributions to global infrastructure development projects on October 27 at Seoul Plaza Hotel.

According to the MOU, the parties will cooperate in ▲exploring overseas infrastructure development projects ▲carrying out project feasibility studies ▲creating and operating the GIVF ▲exchanging information on infrastructure development projects ▲extending financial support, etc.

Recently, Korean companies have been encountering high entry barriers into the overseas infrastructure markets, constrained by less experience and insufficient capital on the back of the rapidly growing number of the investment-development type projects in the market.

With the MOU signed, Korea Eximbank will closely cooperate with MOLIT and KDB in order to support Korean companies seeking to enter into overseas markets.

The GIVF was created through consultations among Korea Eximbank, MOLIT, and KDB along with the Ministry of Strategy and Finance(“MOSF“) and the Financial Services Commission(”FSC”).

Valued at 85 billion won in total, the fund will provide up to 10 billion won for a project’s expenses at an early stage of development and is expected to alleviate the financial burden on Korean companies.