National Growth Fund to Establish Risk Management and Post-Investment Management Committees, Support Five Projects Worth KRW 1 Trillion

[Financial News] The National Growth Fund will establish a Risk Management Committee to assess investment risks in advance and a Post-Investment Management Committee to review the recovery of investment funds and other post-investment measures. Both committees will begin operating in October.
The FSC said on the 17th that the National Growth Fund’s Fund Management Deliberation Committee had convened and approved a plan to reform its decision-making system. The committee also approved funding for five projects, including the Yeonggwang Yawol Offshore Wind Farm project and DN Solutions’ advancement of artificial intelligence transformation (AX) in manufacturing. The projects have a combined value of approximately KRW 1 trillion.
The Risk Management Committee will consist of employees from the National Growth Fund secretariat and outside experts. From the project-discovery stage until an agenda is submitted to the Fund Management Deliberation Committee, it will independently review financial, reputational, governance and legal risks, as well as local community acceptance. The results will be provided to the Investment Deliberation Committee and the Fund Management Deliberation Committee.
The Post-Investment Management Committee will review methods for recovering direct-investment assets and post-investment management plans for projects facing potential insolvency or requiring early recovery. If conditions change after funding support is approved, it will also advise on whether the funds should actually be disbursed. Projects approved before September will also be subject to review.
The Yeonggwang Yawol Offshore Wind Farm project, approved this time, involves building a 104-megawatt wind farm offshore near Nagwol-myeon in Yeonggwang County, South Jeolla Province. Of the total project cost of KRW 757 billion, the Advanced Strategic Industries Fund will provide KRW 130 billion through project financing (PF) loans. The project will use 13 domestically produced offshore wind turbines in the 8-megawatt class developed by Doosan Enerbility.
DN Solutions will build an R&D center in Bucheon, Gyeonggi Province, to develop next-generation smart machine tools. The total project cost is KRW 223.7 billion, with KRW 150 billion from the Advanced Strategic Industries Fund and up to KRW 50 billion in private funding to be provided as low-interest loans. The company plans to develop smart machines that analyze data such as vibration and temperature with AI, assess equipment conditions and automatically adjust machining parameters.
Hwashin, an auto parts manufacturer based in North Gyeongsang Province, will receive KRW 25 billion to expand its production line for electric vehicle battery-pack cases. PKC, based in North Jeolla Province, will receive KRW 12 billion to expand production facilities for high-purity chlorine gas used in semiconductor etching processes. KORNEC will receive KRW 32 billion to establish a mass-production line for lightweight structural frames for humanoid robots.
From January through September this year, the National Growth Fund approved funding or completed fund formation for 35 projects totaling KRW 18.9 trillion. The amount included KRW 2.83 trillion in direct investment, KRW 1.59 trillion in indirect investment, KRW 7.62 trillion in infrastructure investment and financing, and KRW 6.86 trillion in low-interest loans. The FSC expects to reach its annual target of approving KRW 30 trillion in funding ahead of schedule, taking into account indirect-investment funds whose formation will be completed in the fourth quarter.
Excluding the Citizen Participation Growth Fund and the K-Content Fund, support for non-metropolitan areas amounted to KRW 8.05 trillion, or 44.7% of the total KRW 18 trillion approved by region. This exceeds the policy target of 40%. By region, the Capital Region accounted for KRW 9.98 trillion, followed by the Honam region with KRW 5.17 trillion, the Yeongnam region with KRW 1.43 trillion, the Chungcheong region with KRW 1.36 trillion, and the Gangwon-Jeju region with KRW 80 billion.
[email protected] Lee Jeong-hwa Reporter