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Korea Exim News

Korea Eximbank to Offer KRW 3 trillion to Hyundai Motor for Future Mobility Development

Date 2021.04.01 View 13826
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The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Bang, Moon-kyu, "Korea Eximbank") signed a memoradum of understading (MOU) with Hyundai Motor on April 1 to provide a 3 trillion won ($2.66 billion) financial support for the 'Industrial Finance Cooperation Program for the Globalization of the Future Mobility Industry.'

 

Bang Moon-kyu, Chairman of Korea Eximbank met with Hyundai Motor CEO Chang Jae-hoon at the bank’s headquarters in Yeouido and signed the MOU to support policy financing to the automaker which is seeking to successfully transform into a smart mobility solution company.

 

Under the MOU, Korea Eximbank will offer the company 3 trillion won until 2023 for future mobility business.

The fund will be funneled to research and development, facility investments both domestic and overseas, as well as merger and acquisition deals aimed at helping the company and its suppliers reach an advantageous position in the future mobility market.

The bank will provide multi-pronged support across future mobility sectors to help them develop source technology, establish a mass production system, and grow businesses overseas.

Since the carmaker’s partners include small- and medium-sized companies (SMEs), the bank took into account building a sound ecosystem for the future mobility market and included SMEs as its target companies for financial support.

 

“Hyundai Motor has developed into a major carmaker since manufacturing the Pony, Korea’s first domestically made car, in 1975,” said Bang after signing the agreement, adding “Korea Eximbank will play a role in helping Hyundai Motor dominate the future mobility market with the financial support program since no winners have yet been decided.”

 
Chang viewed the MOU laid the groundwork for the firm to accelerate its transition into becoming a smart mobility solution provider and the company would closely collaborate with the bank to build a strong foundation for sustainable growth.
 
 
The global car market is characterized by large investments as global corporations are entering a race to develop more eco-friendly and intelligent vehicles and mobility services.
Jumping into the bandwagon are not only carmakers like Volkswagen and Toyota, but also IT giant Google and plane maker Boeing, who have made massive investments into autonomous driving technology and Urban Air Mobility (UAM).
 
 
In December 2020, Hyundai Motor announced its investment plan at its ‘CEO Investor Day‘ forum. The company said it would make a 23.5 trillion won investment by 2025 to build its capabilities to take on evolving trends in the industry.
 
The plan outlines specific investment targets, including 10.8 trillion won in electrification, 4.8 trillion won in UAM, artificial intelligence and robotics, 2.2 trillion won in mobility services, and 1.6 trillion won in autonomous driving. In the MOU, Korea Eximbank and Hyundai Motor included them as their candidate projects.
 
 
The future mobility sector is one of Korea Eximbank’s seven key areas in accordance of the Korean government’s K-New Deal initiative. The bank has released its plan to make a total of 80 trillion won worth of investments by 2030 to facilitate the initiative. (The six others are green energies such as hydrogen, solar and wind as well as 5G, healthcare and digital content.)

 

The Korean government unveiled the national roadmap to develop future car industry in late 2019, envisioning that it would significantly increase the number of electric and hydrogen fuel-cell electric vehicles on the road and develop self-driving aircrafts.

 
Meanwhile, Korea Eximbank established the Mobility Finance Department dedicated to supporting the automotive and aerospace industries in January through organizational reshuffling and completed its preparation for full-fledged support with various financial methods.