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Supporting Overseas Bids by Developing New Overseas Projects and Large-scale Financial Support
- First anniversary event of KIND and find investment MOU to establish 1.5 trillion KRW private-public cooperation mother fund -
□ MOLIT (Minister Kim Hyun-mee) held a Plant/Infrastructure/Smart City (PIS) fund investment MOU ceremony worth 1.5 trillion KRW with public institutes in the infrastructure sector on the 27th (Sun) to provide systematic support for overseas investment development projects that can create high additional value, rather than simply winning subcontracts.
□ With the ongoing sluggish situation for winning overseas construction bids due to uncertainties in international oil prices and with a sense of crisis that we are falling behind against late-comers such as China in the Middle East, which was a stronghold for Korea,
ㅇ the PIS fund was established to provide support for exports in the plant, construction and smart city sectors by having the government, public institutes and private sector, etc. team up as announced in the ‘19 economic policy direction (Dec ’18), foreign economic summit meeting (Feb ‘19), and economic revitalization meeting (Apr ’19) through discussions with the Ministry of Economy and Finance as part of the government innovation efforts.
□ Meanwhile, this day was the first anniversary of the Korea Overseas Infrastructure & Urban Development Corporation (KIND) that was launched with the goal of becoming a ‘reliable partner for entering foreign markets.
ㅇ Heads of fund investment institutes such as LH, Incheon Airport Corporation, and the Busan Port Authority, as well as representatives from construction and engineering companies and asset management companies were present to congratulate the one year anniversary, and the participants pledged to overcome the crisis for overseas construction together.
□ Minister of Land, Infrastructure and Transport Kim Hyun-mee said in her congratulatory address that despite being only one year since its establishment, it has made visible achievements such as helping to win the bid for the Poland plant worth 1.1 billion USD for Korean companies recently.
ㅇ She urged that KIND establish systematic strategies so that it could make up for the sluggish orders and act as a bridge for Korean companies to enter foreign markets as the leader of Team Korea.
□ The event was made up of part 1 for the fund investment MOU and the one year anniversary ceremony event, followed by part 2 where mid- to long-term strategies to enter foreign infrastructure markets were discussed with experts.
ㅇ A spokesperson from MOLIT said that it is planning to strengthen expertise in each field to allow joint operation by opening the doors to foreign management companies that have strengths in the respective fields when establishing child funds per PIS fund.
ㅇ In this case, it is expected that the abundant liquid funds in the market can be invested in overseas investment development projects.
□ KIND CEO Heo Gyeong-koo said expressed the will of KIND to take the initiative to reinvigorate overseas bids through the 2019-2023 overseas infrastructure entry strategy presentation to (1) configure customized entry strategies per core nation, (2) advance the business model, and (3) elevate bidding competitiveness and risk management capacities.
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