Hyundai Motor Group Establishes 'Zero One Fund 2' with 74.5 Billion KRW for Startup Investments

Signed a Business Agreement with Korea Development Bank to Foster the Future Mobility Ecosystem
Totaling 74.5 Billion KRW... Hyundai Motor Group Companies, KDB, and Partners Also Invest

[Asia Economy Reporter Yu Je-hoon] Hyundai Motor Group is partnering with KDB Industrial Bank to support startups with innovation and creativity in fields such as future mobility.

Hyundai Motor Group announced on the 1st that it will invest in startups by establishing the 'ZERO1NE 2 Fund' worth a total of 74.5 billion KRW. Additionally, Hyundai Motor Group signed a 'Business Agreement for Fostering the Future Mobility Ecosystem' with KDB Industrial Bank and decided to collaborate to support promising startups in related fields.

ZERO1NE is a new concept open innovation platform opened by Hyundai Motor Group in 2018 with the goal of creating an ecosystem for creative talents. Hyundai Motor Group previously established the ZERO1NE 1 Fund and has supported emerging startups over the past three years through equity investments and joint project execution.

The ZERO1NE 2 Fund, established with a total of 74.5 billion KRW, is operated with Hyundai Motor contributing 18 billion KRW, Kia 12 billion KRW, and Hyundai Motor Securities 5 billion KRW. KDB Industrial Bank and Shinhan Bank also participated as investors by contributing 20 billion KRW and 3 billion KRW respectively. In addition, affiliates such as Hyundai Mobis, Hyundai MnSoft, Hyundai Transys, Hyundai Autron, Hyundai Engineering, as well as partners including Mando, Donghee, Global Auto Trading, and Korea FT also contributed and participated as investors.

The investment targets of the ZERO1NE 2 Fund are promising startups in future mobility, eco-friendly vehicles, artificial intelligence (AI), connected cars, and other future new business sectors. In particular, Hyundai Motor Group plans to lead growth by investing mainly in startups that can contribute to the eco-friendly mobility ecosystem, which is becoming increasingly important due to the Green New Deal.

Hyundai Motor Group stated, "This fund is meaningful in that two groups leading the Korean economy and key affiliates have joined hands to seek the creation of future new growth engines," adding, "As disruptive innovation competition intensifies across all industries, building an ecosystem based on open innovation through openness and cooperation is essential to lead the market and secure competitive advantage."

Hyundai Motor Group also plans to provide companies directly participating in the fund with opportunities such as round tables, demo days, and conferences, which are startup sharing events at the Hyundai Motor Group level. Furthermore, communication opportunities will be arranged with group companies and parts partners not participating in the fund to actively support information sharing and collaboration within the mobility ecosystem.

Meanwhile, according to this business agreement between Hyundai Motor Group and KDB Industrial Bank, they plan to continue mutual cooperation in various areas including sharing information on trends in the eco-friendly mobility industry, sharing information on discovered companies, establishing a joint investment cooperation system and co-creating growth funds, exchanging information on new promising business items and linking to commercialization, providing business funds to new business collaboration companies, and joint investment in leading investment companies and companies planned for investment.

Jiyoung Jo, President of Hyundai Motor Group, said, "To support startups with innovative technologies and creative ideas, collaboration with not only Hyundai and Kia but also the complete vehicle ecosystem is essential," and added, "We will actively cooperate with competitive partners to build a world-class mobility ecosystem."

This content was produced with the assistance of AI translation services.