NH NongHyup Financial Group will create the 100 billion won "NH Korea Co-Growth Fund 2" to invest in regional specialised industries and supply-chain companies.

NH NongHyup Financial said on Tuesday that the "NH Korea Co-Growth Fund 2" (tentative name), to be managed by NH-Amundi Asset Management, will be set up as a 100 billion won blind fund. The funding will come from internal group funds contributed by major affiliates including NH NongHyup Bank, NH NongHyup Life Insurance, NH NongHyup Property & Casualty Insurance, NH Investment & Securities and NH NongHyup Capital.

The fund will make direct investments in regional specialised materials, parts and equipment companies, vendors to large companies, and key firms in regional industrial value chains. It also plans to make indirect investments, including by committing as a limited partner in sub-funds of the National Growth Fund. Investment targets are promising region-based small and medium-sized enterprises and mid-sized firms.

NH NongHyup Financial plans to expand investment using regional financial infrastructure and on-the-ground networks, taking into account that more than 40 percent of National Growth Fund money is concentrated on supporting provincial areas.

NH NongHyup Financial Chairman Lee Chan-woo (이찬우) said, "Through NH Korea Co-Growth Fund 2, we will support the entire value chain of regional specialised industries and contribute to the growth of Korea's industrial ecosystem and regional development."