Issue Focus

While the COVID-19 is deteriorating the world economy severely, new infrastructure investment plans by leading economies for ‘Post Corona Era’ are also being shaped up. However, government budget conditions in those countries are worsening rapidly and funding is becoming a key issue for the investment implementation, which is also the case with Korea. In this study, utilization plan for government funds for infrastructure investment was sought. After analyzing the situation of government funds operation, it was found that not a little amount of excess cash is just deposited in bank accounts while their asset yield rate is quite low. Also it was found that their operation agencies are allowed to invest their surplus money into public or private bonds with middle or high credit rating. Based on the findings, new investment mechanism was designed and suggested in this study. After analyzing various investment frameworks which are applicable within legal context, collective investment scheme which collects surplus money from government funds and invests into a public project operator was suggested. It was also suggested that public agencies such as LH or KAMCO could play as the public project operator and HUG could play as the collective investment scheme.