Financial Consortium Formed for 3.4 Trillion Won Shinan Ui Offshore Wind Power Project... Funding Begins

Financial Services Commission Holds PF Financing Agreement Ceremony for the Project
Kwon Daeyoung: "Responding to AX Power Demand... National Growth Fund, a Breakthrough for Innovative Projects"

The government has completed the formation of a financial consortium for the 'Shinan Ui Offshore Wind Power Project,' the first project of the National Growth Fund, and will begin full-scale funding starting in the second quarter of this year.

On April 9, the Financial Services Commission held a project financing (PF) agreement ceremony for the project at Korea Development Bank in Yeouido, Seoul. The event was attended by Vice Chairman Kwon Dae-young of the Financial Services Commission, relevant ministries, major financial institutions including Korea Development Bank, and representatives from participating companies such as Hanwha Ocean, Korea Midland Power, SK EterNix, and Hyundai Engineering & Construction.

This agreement ceremony signifies that, following the initial approval of funding at the Advanced Strategic Industry Fund Management Deliberation Committee in January, the formation of the financial consortium has been completed, and the project has entered a full-fledged implementation phase.

The Shinan Ui Offshore Wind Power Project aims to build a 390-megawatt (MW) power plant in the southern offshore area of Ui Island, Shinan-gun, Jeollanam-do, with the goal of completion and full operation by 2029. As a large-scale offshore wind power project driven by domestic capital, it is expected to contribute to the expansion of the related industrial ecosystem by maintaining a high proportion of domestically manufactured core equipment.

The total project cost is KRW 3.4 trillion, of which KRW 510 billion will be raised as equity capital and KRW 2.89 trillion as debt capital. Of the debt capital, KRW 2.5 trillion will be provided as senior loans by the Advanced Strategic Industry Fund (KRW 700 billion) and 18 financial institutions, including the five major domestic financial holding companies, Industrial Bank of Korea, Busan Bank, and insurance companies. The remaining KRW 390 billion will be provided as subordinated loans by the Future Energy Fund (KRW 340 billion) and the Advanced Strategic Industry Fund (KRW 50 billion). Accordingly, phased disbursement of funds will begin in the second quarter.

In his congratulatory remarks, Vice Chairman Kwon Dae-young stated, "As the era of artificial intelligence (AI) transformation (AX) unfolds, it is a critical time to secure the power supply necessary to support the construction of AI data centers." He added, "The Shinan Ui Offshore Wind Power Project is expected to help address the explosive increase in energy demand triggered by AI, and to have a positive impact on the overall energy industry through the active production of renewable energy." He further emphasized, "Just as this project, which had been stalled for seven years, gained momentum after being approved as the first project under the National Growth Fund, the fund is expected to serve as a breakthrough for other innovative projects in various fields that have faced difficulties due to investment cost burdens."

The Financial Services Commission plans to collaborate with relevant institutions to monitor project progress and to support the project’s smooth implementation through stable fund management and risk control.

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