□ The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Bang, Moon-Kyu, "Korea Eximbank") announced on July 25 that it will invest 100 billion won to foster next-generation mobility sectors following a 50 billion investment in ESG funds in the first half of this year.

□ Korea Eximbank made the decision in an attempt to quickly shift the paradigm of the mobility industry to focus more on future cars and to facilitate a space development ecosystem led by the private sector.

ㅇ The 100 billion won investment will be allocated to the next generation mobility sectors outlined in the K-New Deal, including electronic, hydrogen-fueled or autonomous driving cars, urban air mobility (UAM), eco-friendly vessels and aerospace crafts*.

ㅇ This investment is part of a 400 billion won fund it plans to set up.

* Next-generation mobility: Nine areas among K-New Deal green and digital categories, including next-generation power devices, next-generation wireless communication media, object detection, broadband measurement, renewable energy, eco-friendly power generation, energy storage, robots, and aerospace.

□ Korea Eximbank plans to provide incentives to fund operators to support the government's K-New Deal policy and induce them to pour in more investments in the next generation mobility businesses.

□ The size of investment that the Bank will make will differ for each PEF operator. That is, it will be in proportion to their investment plans. The operators will receive larger amount of investment if the amount of the investment they will be making in the next-generation mobility sectors is considered large.

ㅇ To be more specific, each manager will be required to invest at least 1.5 times the amount of Korea Eximbank’s investment in the future mobility related firms. Adding to the condition, the Bank will share some part of its profit from the fund with fund managers that invest more money than required as an incentive.

□ Furthermore, in line with Korea Eximbank’s “ESG Management Roadmap" disclosed on July 1, the Bank will factor into ESG elements in selecting fund managers to promote socially responsible investment.

□ Chairman Bang remarked, “As the paradigm of mobility industry is fast-changing from internal combustion engine vehicles to eco-friendly cars with AI intelligent services, its ecosystem is also undergoing a rapid transition starting with the parts sector moving towards batteries and communication devices.”

ㅇ He added, "We will support Korean companies in technology development, equipment investment and M&As with mid- to long-term funds so that they can set foot in the related parts and materials market and front and back industry faster than other players.“

□ Korea Eximbank's investment plan in next-generation mobility sectors was announced on its website on July 23. The Bank aims to raise the fund in the second half of the year with approval from the Minister of Strategy and Finance.

□ Meanwhile, Korea Eximbank plans to invest a total of 80 trillion won into the New Deal sectors through 2030 to promote the globalization of the K-New Deal. It will contribute 17.5 trillion won to future mobility sectors alone.