KB Kookmin Bank is committing capital to a large fund aimed at building infrastructure for advanced strategic industries.

KB Kookmin Bank said on 12 it signed an agreement to commit 500 billion won to the 1 trillion won KB Kookmin Growth Infrastructure Fund.

The KB Kookmin Growth Infrastructure Fund is a 1 trillion won blind fund established and managed by KB Asset Management. It includes KB Kookmin Bank, KB Insurance and KB Life, and will be financed entirely with funds from KB Financial Group.

The fund features what it called the industry’s first adoption of a “perpetual closed-end infrastructure fund” structure to ease profit and loss volatility that could arise during the management of a large fund.

The fund plans to invest in digital infrastructure, energy infrastructure, renewable energy transition and regional balanced growth social overhead capital (SOC) sectors. It is expected to contribute to strengthening competitiveness in advanced strategic industries, regional growth and job creation by building an ecosystem for productive finance.

A key investment under review is the Yongin Semiconductor Cluster group energy project, and it plans to pursue the discovery of infrastructure projects with high growth potential.

KB Kookmin Bank is expanding financial support for mega infrastructure projects, starting with the financial arrangement for the Shinanuui offshore wind power project, the first investment destination of Kookmin Growth Fund No. 1. It also said it aims to contribute to achieving the Kookmin Growth Fund supply target of 10 trillion won as part of KB Financial Group’s plan to supply 93 trillion won in productive finance by 2030.

A KB Kookmin Bank official said the KB Kookmin Growth Infrastructure Fund is intended to strengthen South Korea’s future growth foundation by expanding investment in advanced strategic industries and core national infrastructure. The official said the bank will continue to support sustainable growth of the national economy and stronger industrial competitiveness based on productive finance.