South Korea is trying to turn itself into a logistics hub, with air freight channelled through Incheon airport and ships through Busan port.
The maritime affairs and fisheries ministry said the state-run Korea Development Bank and Kookmin Bank would each manage a W1000 billion fund.
They will first look at investing in China, India, Italy, Russia, Sri Lanka and Vietnam, using the funds to develop ports and logistics centres.
"To aggressively deal with the growing logistics market and achieve our goal of becoming an Asian hub in the sector, it is necessary to secure financial resources to help domestic logistic companies make inroads into overseas markets," the ministry said.
The government will give Won300 billion over five years to the funds, while the remainder is expected to come from other domestic banks, insurance companies and pension funds.
The maritime affairs and fisheries ministry said the state-run Korea Development Bank and Kookmin Bank would each manage a W1000 billion fund.
They will first look at investing in China, India, Italy, Russia, Sri Lanka and Vietnam, using the funds to develop ports and logistics centres.
"To aggressively deal with the growing logistics market and achieve our goal of becoming an Asian hub in the sector, it is necessary to secure financial resources to help domestic logistic companies make inroads into overseas markets," the ministry said.
The government will give Won300 billion over five years to the funds, while the remainder is expected to come from other domestic banks, insurance companies and pension funds.