SEOUL, KOREA – The government has set out to create a private equity fund worth up to 1 trillion won in efforts to support Korean contractors in winning large-scale plant building projects overseas. According to investment banking sources on December 9, the Ministry of Knowledge Economy began taking applications for the management of the Korea-Middle East plant fund through Samjong KPMG.
The fund will be formed to the tune of US$1 billion, including $500 million from domestic institutional investors and another $500 million from the Chinese sovereign fund. The fund has doubled in size since the government announced that it would create a fund. In March this year, the government had said that it would form a $500-million Korea-Middle East plant fund.
The money will be invested in areas such as petroleum refining, chemical, power generation, nuclear power generation, plants, and construction. With additional loans based on the fund, the actual investment size may double or triple.
*Article provided by The Korea Economic Daily
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