South Korean insurers will invest a total of KRW8tn ($5.6bn) in the National Growth Fund over the next five years. The industry will also provide KRW40tn to productive finance initiatives, an increase of KRW3.2tn from the commitment made earlier in January.
According to media reports, the country’s insurance regulator, the Financial Services Commission (IFC), recently held a meeting with 16 life and non-life insurance companies, along with the Korea Life Insurance Association and the General Insurance Association of Korea, to discuss participation in the National Growth Fund.
At the meeting, the insurers indicated that their investments would focus primarily on data centres, renewable energy infrastructure and indirect investments in advanced industries. This aligns with insurers' preference for long-term alternative investments.
However, the industry has struggled to find suitable long-term investment opportunities beyond 30-year government bonds. The FSC emphasised that the National Growth Fund represents a new long-term investment vehicle when persuading insurers to participate.
Insurers are also committed to deploying KRW40tn in productive finance over the next five years, an increase of KRW3.2tn from the amount announced to financial authorities in January this year.