Private Capital Flows into Electric and Hydrogen Charging Infrastructure... 149.4 Billion Won Investment Fund Launched

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A large-scale public-private investment project for electric and hydrogen mobility charging infrastructure is set to launch in earnest. With a 74.7 billion won parent fund combined with private capital, total investment is expected to reach up to 149.4 billion won.

On January 30, the Ministry of Climate, Energy and Environment announced that it had finalized the operational guidelines for the "Electric and Hydrogen Mobility Infrastructure Fund Project," a public-private joint investment initiative, and would begin full-scale implementation. Accordingly, a call for applications will be held next month to select a lead management company to operate the 74.7 billion won parent fund. Through the creation of sub-funds, private capital will be combined, resulting in a maximum investment of up to 149.4 billion won.

This project is a new policy initiative in which the government and public institutions provide initial funding to attract private capital, enabling mid- to long-term investment in charging infrastructure. The proportion of private capital in the sub-funds will be set at an average of 50% or more, with the aim of expanding private sector participation.

Overview of the Electric and Hydrogen Mobility Infrastructure Fund. Ministry of Climate, Energy and Environment.

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Investment targets include the construction and operation of electric and hydrogen charging facilities, new businesses linked to charging infrastructure, performance improvement and safety enhancement of aging charging stations, and more. Specifically, the scope covers the installation of electric chargers, establishment of hydrogen charging stations, hydrogen production and charging projects linked with renewable energy, electric mobility battery replacement hubs, and bidirectional power-linked charging stations.

From the policy design stage, the Ministry gathered on-site feedback from market participants, including charging infrastructure operators and asset management companies, through roundtable discussions. By reflecting opinions on investment conditions and business structure, the Ministry explained that it has improved the feasibility of private sector participation and project implementation.

The parent fund will be managed by a lead management company selected through a public tender next month. The government plans to ensure the fund is operated as intended by establishing an operating committee, conducting performance evaluations, and carrying out financial audits. Detailed procedures and standards will be implemented according to the newly finalized operational guidelines.

Seo Youngtae, Director-General for Green Environment Policy at the Ministry, stated, "This is a new type of policy project that uses government funds as a catalyst to attract private investment," adding, "Through cooperation with the market, we will steadily expand investment in electric and hydrogen mobility charging infrastructure."

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