Hyundai Motor Partners with Government to Establish Large-Scale Future Car Investment Fund

Hyundai Motor Group Signs Investment Cooperation Agreement with Government Agencies, Financial Sector, and New Deal Fund Management Institutions on the 4th
Participates in Establishing a 200 Billion KRW 'Future Mobility and Industrial Digital Investment Fund' in 2021

[Asia Economy Reporter Changhwan Lee] Hyundai Motor Group is joining hands with the government and financial sector to establish a fund worth 200 billion KRW to actively support domestic parts suppliers aspiring to enter the future car industry and to build charging infrastructure for electric vehicles and hydrogen fuel cell vehicles.

On the 4th, Hyundai Motor Group announced that it signed the 'Future Car and Industrial Digital Sector Industry-Finance New Deal Investment Cooperation Agreement' together with government agencies, financial institutions, and policy fund management organizations at Hyundai EV Station Gangdong.

This agreement was promoted to successfully support New Deal investments in the future car and industrial digital sectors through industry and finance cooperation, and to strengthen the growth of small and medium-sized enterprises and the industrial ecosystem.

The participating institutions, companies, and banks agreed to mutually cooperate to establish a total 200 billion KRW 'Future Car and Industrial Digital Investment Fund' (hereinafter referred to as the Future Car Investment Fund), which is a sub-fund of the policy New Deal fund, within 2021.

The Future Car Investment Fund consists of three funds in total: two corporate investment funds worth 150 billion KRW each and an infrastructure investment fund worth 50 billion KRW.

The corporate investment funds will invest in domestic parts companies developing new technologies to transition from existing internal combustion engine parts to eco-friendly future car parts companies, while the infrastructure investment fund will invest in eco-friendly future car infrastructure such as ultra-fast electric vehicle charging stations and hydrogen charging stations.

Hyundai Motor Group will participate in the three funds with 10 billion KRW each, totaling 30 billion KRW.

The company explained that this decision aims to actively support internal combustion engine parts suppliers to grow into competitive future car parts companies as the zero-emission vehicle market, including electric and hydrogen fuel cell vehicles, expands and the commercialization of future new technologies such as autonomous driving and artificial intelligence accelerates.

A Hyundai Motor Group official said, “We expect the Future Car Investment Fund to serve as a stepping stone for internal combustion engine parts suppliers to prepare parts for zero-emission and autonomous vehicles, and to contribute to expanding charging infrastructure so that customers can conveniently charge electric and hydrogen vehicles anywhere nationwide.”

In addition, considering that domestic parts suppliers face difficulties due to a lack of information related to eco-friendly future cars, Hyundai Motor Group plans to actively cooperate with the Automotive Parts Industry Promotion Foundation, a non-profit public corporation for automotive parts companies, to eliminate information blind spots.

Meanwhile, the signing ceremony was attended by Minister Sung Yun-mo of the Ministry of Trade, Industry and Energy, Chairman Eun Sung-soo of the Financial Services Commission, Chairman Lee Dong-geol of Korea Development Bank, CEO Sung Ki-hong of Korea Growth Investment Corporation, President Jung Yang-ho of the Korea Evaluation Institute of Industrial Technology (KEIT), President Seok Young-chul of the Korea Institute for Advancement of Technology (KIAT), Chairman Kim Jung-tae of Hana Financial Group, Chairman Cho Yong-byoung of Shinhan Financial Group, President Yoon Jong-won of Industrial Bank of Korea, and President Gong Young-woon of Hyundai Motor Company.

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