Korea Development Bank said it will broaden the National Growth Fund’s investment focus beyond advanced strategic industries to include small and midsize companies outside the Seoul metropolitan area, stepping up efforts to support more balanced regional growth. The state-run lender plans to complete selection of follow-on “mega-project” investments under the 150 trillion won fund within this month, aiming to ease a capital-centered growth structure and build multiple growth hubs.
KDB Chairman Park Sang-jin said at a news briefing Tuesday at the bank’s headquarters in Seoul’s Yeouido district that, after naming the Sinan Ui offshore wind power project as the fund’s first investment, the bank will select the second and third investments later this month. “We plan to approve all investments in the seven mega-projects within the first half of the year,” Park said.
KDB is the operator of the 150 trillion won National Growth Fund and is responsible for identifying mega-projects and overseeing overall fund management. Park said early candidates were reviewed mainly in advanced strategic industries with broad spillover effects, such as semiconductors and artificial intelligence, but future projects are being considered with a greater focus on regions and smaller companies.
To widen participation by regional firms with limited access to information, KDB plans to hold briefings by region in March and April. Park said the bank will take a proactive approach so local companies are not left out because of information gaps, including seeking out firms that need support.
Park said KDB will also expand regional financial support. He said the bank will increase its preferential regional special products to 15 trillion won this year from 10 trillion won last year and plans to supply a total of 30 trillion won to non-capital regions this year. Beyond the National Growth Fund, he said KDB will create additional regional growth funds, including a regional revitalization investment fund, to tailor financing to local demand.
Park also addressed the planned relocation of HMM, in which KDB holds a stake, to Busan and the bank’s future divestment plans. He said the Ministry of Oceans and Fisheries and the Korea Ocean Business Corp. have presented a schedule to complete the move in March and April, adding that KDB will actively support the relocation once it is confirmed.
On a potential sale of HMM, Park said the overarching principle of divestment remains in place, but it is not at a stage to be pursued immediately. He said the bank will review whether to proceed after the Busan relocation is completed.
KDB and the Korea Ocean Business Corp. are HMM’s largest shareholders, holding 35.42% and 35.08%, respectively. The two institutions have maintained a phased sale policy after providing a total of 6.9 trillion won in support since 2016.
* This article has been translated by AI.
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