Export-Import Bank of Korea headquarters in Seoul (Eximbank)
The state-run Export-Import Bank of Korea said on July 25 it will invest 100 billion won ($87 million) in future mobility businesses to ensure local firms can gain an upper hand in those fields amid a rapidly changing global market.
The areas in which it will allocate investments include electronic, hydrogen-fueled or autonomous driving cars, urban air mobility, eco-friendly vessels and aerospace crafts. The lender made the investment decision in line with the government-led Korean New Deal initiative, which focuses on nurturing future industries and accelerating the development of digital infrastructure.
“The paradigm of mobility industry is fast-changing from internal combustion engine vehicles to eco-friendly cars with AI intelligent services. We will support our companies in the fields of technology development, equipment investment and M&As so that they can set foot in the related parts and materials market and front and back industry faster than other players,” CEO of Eximbank, Bang Moon-kyu, said in a statement.
The 100 billion won from Eximbank will be part of a 400 billion-won fund it plans to set up.
The bank plans to raise money for the funds until the second half of this year after selecting the managers of the fund, which requires the approval of the country’s finance minister.
Each manager will be required to invest at least 150 billion won into future-mobility related firms. The bank will share some part of its profit from the fund with fund managers that pour in more money than required as an incentive.
Meanwhile, Eximbank is to invest 80 trillion won into K-New Deal businesses through 2030. It will contribute 17.5 trillion won into future mobility alone.
By Byun Hye-jin (firstname.lastname@example.org)