Seoul: The government plans to increase state-backed overseas infrastructure funds to strengthen the financing capabilities of South Korean builders seeking to win large-scale global construction and development projects, the land ministry said Friday.

According to Yonhap News Agency, the plan, approved in a meeting of economic ministers, aims to help Korean firms move beyond traditional engineering, procurement, and construction (EPC) contracts and compete as major developers by pairing engineering expertise with long-term financing.

To this end, the government will substantially increase overseas infrastructure investment funds, including corporate matching funds operated through the Korea Overseas Infrastructure and Urban Development Corporation (KIND), the ministry said. These funds allow KIND and private companies to jointly invest in overseas projects, typically on a 50:50 basis.

The government also plans to work more closely with global developers and multilateral development banks (MDBs) by creating joint funds and promoting cooperative financing programs with the Export-Import Bank of Korea. Additionally, the ministry will work to revise the Overseas Construction Promotion Act established in 1975 to modernize the infrastructure industry's regulatory framework.

Land Minister Kim Yun-duk emphasized that expanding builders' financing capacity is essential for safeguarding South Korea's market share abroad. "The government will reinforce its financial support so that Korean companies can secure high-quality overseas projects and enhance their leadership in the global market," Kim said.