South Korea's Ministry of Land, Infrastructure and Transport announced on Friday that the government plans to increase state-backed overseas infrastructure funds to enhance the financing capabilities of Korean construction firms competing for large-scale global projects.

The plan, approved during an economic ministers' meeting, aims to help Korean companies move beyond traditional Engineering, Procurement, and Construction (EPC) contracts by combining engineering expertise with long-term financing to compete as major developers.

To achieve this, the government will significantly expand overseas infrastructure investment funds, including corporate matching funds operated by the Korea Overseas Infrastructure and Urban Development Corporation (KIND).

These funds allow KIND and private companies to co-invest in overseas projects on a 50:50 basis.

Additionally, the government plans to establish joint funds in collaboration with the Korea Export-Import Bank and strengthen partnerships with global development firms and Multilateral Development Banks (MDBs) through cooperative financing initiatives.

Furthermore, to modernize the regulatory framework for the infrastructure sector, the government will revise the Overseas Construction Promotion Act, which was enacted in 1975.