The Korea Overseas Infrastructure Fund was established last year with an initial capital of US$2 billion.
According to reports, the Ministry of Land, Infrastructure and Transport has narrowed the candidates to three overseas projects led by South Korean companies. Citing unnamed construction industry sources, the reports said that the ministry plans to make its recommendations to the Korea Investment Corporation within October.
The shortlisted projects are a roadbuilding project in Kazakhstan, solar power project in Australia and a hydroelectric power project in the Solomon Islands.
Of the three, the Kazakhstan project is reported to have gained the most attention.
The US$900 million project will see the construction of a 66-kilometer road, and the consortium led by SK E&C and the Korea Expressway Corporation has been selected as the preferred bidder.
The hydropower project is led by the state-run water resource developer K-Water and Hyundai Engineering, while the Australian projected is headed by Hanwha Energy.
The projects reportedly offer between 6 percent and 10 percent annual returns, and the Korea Investment Corporation could choose to invest in all three projects, reports said.
By Choi He-suk (firstname.lastname@example.org)