The Financial Services Commission (FSC) is accelerating the establishment of the Southeast Investment Corporation in Busan, which had slowed after the resignation of former Ministry of Oceans and Fisheries Minister Chun Jae-soo. The FSC is preparing a bill that includes a plan for the Southeast Investment Corporation to raise investment funds by issuing bonds and debentures. The purpose of the Southeast Investment Corporation is to support corporations in shipbuilding, automobiles, parts and materials, bio, and renewable energy located in the Busan, Ulsan, and South Gyeongsang regions.
On the 20th, according to the financial sector, the FSC is preparing the Act on the Establishment and Operation of the Southeast Investment Corporation. The Democratic Party of Korea and the FSC recently finalized a government plan and reportedly agreed to push for the establishment of the Southeast Investment Corporation through a member's bill.
Currently, a bill to establish the Southeast Investment Corporation, proposed by Democratic Party lawmaker Min Byung-deok, is pending in the National Assembly. The bill proposed by Min includes a plan for 3 trillion won in capital for the Southeast Investment Corporation to be jointly shared by three state-run banks—industry, export-import, and corporations—and local governments, including Busan, Ulsan, and South Gyeongsang.
The FSC's plan is understood to include allowing the corporation to raise capital by issuing bonds and debentures. If bonds and debentures are issued with a government guarantee, investment funds can typically be secured up to 15 times the issue amount.
The investment targets are expected to be expanded to include corporations in regions that have a transaction with the Southeast region (Busan, Ulsan, and South Gyeongsang). This would provide grounds for corporations to receive investment from the corporation even if they are not in the Southeast region.
Establishing the Southeast Investment Corporation was a campaign pledge of President Lee Jae-myung. Concerns emerged in the industry that the corporation's establishment had lost momentum after former Minister Chun, who had led the effort, recently stepped down over allegations of receiving funds from the Unification Church. With the government plan finalized and the bill submitted to the National Assembly, the corporation's launch is expected to gain traction.