The insurance industry will supply 40 trillion won in productive finance over the next five years. Of that, about 8 trillion won will be injected into the Public Growth Fund.
The Financial Services Commission on the 6th held the "insurance industry Public Growth Fund roundtable" with Korea Development Bank, the Financial Supervisory Service, and 14 major insurers to discuss the fund's management plan and participation methods.
The Financial Services Commission said the Public Growth Fund, which supplies long-term capital to advanced strategic industries, could become a new investment destination for insurers. At the roundtable, the insurance industry unveiled a plan to support 40 trillion won in productive finance over the next five years and to invest 8 trillion won of that in the Public Growth Fund. In particular, it showed strong interest in long-term infrastructure investments such as data centers and renewable energy, and in indirect investments in advanced technology industries.
The insurance industry is expected to participate as a limited partner (LP) in indirect investment funds created by the Public Growth Fund, or to provide loans or take equity stakes in infrastructure investments. It is also possible to purchase advanced strategic industry fund bonds issued by Korea Development Bank.
The insurance sector suggested that activating information sharing between the government and the financial sector and improving capital regulations on policy fund investments are needed to boost investment. The Financial Services Commission said it will continue to communicate with the insurance industry and prepare measures to streamline capital regulations related to policy funds, infrastructure, and venture investments.