Future car·industrial digital field industry-finance new deal investment cooperation business agreement
In 2021, a total of 200 billion won in’future car industrial digital investment fund’ was created.
Hyundai Motor Group 30 billion, KEIT, KIAT, Kieun, New Deal Fund 110 billion, other private 60 billion, etc.
[그린포스트코리아 이한 기자] Hyundai Motor Group participates in the creation of a large-scale fund to build an ecosystem for the future vehicle industry. The Hyundai Motor Group will support domestic parts makers and actively build infrastructure for charging electric vehicles and hydrogen electric vehicles.
On the 4th, Hyundai Motor Group signed a’Future Vehicle/Industrial Digital Industry-Finance New Deal Investment Cooperation Business Agreement’ with government agencies, financial institutions, and policy fund management institutions at Hyundai EV Station Gangdong. The business agreement ceremony included Minister of Trade, Industry and Energy Sung Yun-mo, Chairman of the Financial Services Commission Eun Seong-su, Chairman of the Korea Development Bank, Ki-Hong Seong, CEO of Korea Growth Finance Corporation, Yang-ho Jeong, President of the Korea Development Institute (KEIT), Yoo Ji-cheol, Director of the Institute for Industrial Technology Promotion (KIAT), Jeong-tae Kim, Hana Financial Group. Chairman, Yong-Byeong Cho, Chairman of Shinhan Financial Group, Jong-won Yoon, President of Industrial Bank of Korea, and Young-woon Kong, President of Hyundai Motor Company attended the event.
This business agreement was promoted to support the new deal investment in the future car and industrial digital sectors, and to strengthen the growth and industrial ecosystem of small and medium-sized companies. Participating institutions, companies, and banks decided to cooperate with each other in 2021 to create a’Future Car and Industrial Digital Investment Fund (hereinafter referred to as the Future Car Investment Fund)’ worth 200 billion won, which is a subsidiary fund of the policy-type New Deal Fund.
◇ Creating an investment fund worth 200 billion won… Participating 30 billion won in three funds of Hyundai Motor Group
The Future Car Investment Fund consists of three funds: two corporate investment funds worth 150 billion won and infrastructure investment funds worth 50 billion won.
The corporate investment fund invests in domestic parts companies that develop new technologies to enter the eco-friendly future car parts company from the existing internal combustion engine parts, and the infrastructure investment fund invests in eco-friendly future car infrastructure such as high-speed electric vehicle charging stations and hydrogen charging stations.
Hyundai Motor Group will participate in the three funds with a total amount of 30 billion won, each of 10 billion won. In the future, as the market for pollution-free vehicles such as electric vehicles and hydrogen electric vehicles expands and the commercialization of future new technologies such as autonomous driving and artificial intelligence accelerates, the decision is to actively support internal combustion engine parts makers to grow into competitive future car parts companies. In addition, funds will be raised from KEIT, KIAT, Kieun, New Deal Fund 110 billion, and other private 60 billion.
The successful entry of auto parts companies into the future car industry is not just a dimension of survival of individual companies, but an issue that determines the competitiveness of the future automotive industry. It follows. This is because early construction of infrastructure for domestic environmental vehicles and autonomous vehicles is essential to lead the global eco-friendly future vehicle market.
The Hyundai Motor Group is also actively making efforts to expand eco-friendly charging infrastructure. This year, a total of 120 high-speed electric vehicle chargers will be installed in 12 highway rest areas and 8 major city centers across the country. In addition, since 2018, it has built eight hydrogen charging stations in downtown and highway rest areas nationwide, and plans to expand the charging network nationwide through the companies that build and operate hydrogen charging stations, Hinet (passenger) and Kohaizen (commercial).
An official of Hyundai Motor Group said, “The Future Vehicle Investment Fund will become a platform for internal combustion engine parts makers to prepare pollution-free and self-driving car parts, and contribute to the expansion of the charging infrastructure so that customers can conveniently charge electric and hydrogen vehicles anywhere in the country. I look forward to it.”
At the same time, Hyundai Motor Group is working hard to resolve information blind spots by actively cooperating with the Auto Parts Industry Promotion Foundation, a non-profit public interest corporation for auto parts makers, considering that domestic parts makers are suffering from lack of information on eco-friendly future cars. The policy is to pour.
◇ Multilateral support for sustainable growth of domestic parts companies
In addition to participating in this fund, Hyundai Motor Group is providing diverse support so that domestic parts makers can continue to grow through stable management activities.
At the beginning of last year, large-scale funding was urgently invested when domestic small and medium-sized parts makers were in trouble due to the worldwide suspension of automobile production due to Corona 19. In order to ensure timely liquidity for small and medium-sized parts suppliers, interest-free support of KRW 308 billion was provided, and funds were executed at a scale of KRW 1 trillion through early settlement of KRW 585 billion in delivery costs and KRW 105 billion in parts production investment.
In addition, when small and medium-sized parts makers with technological prowess and stable suppliers were unable to secure funds in the short term due to Corona 19, the government and local governments contributed 120 billion won to prevent chain damage and protect the automotive industry ecosystem. Together with local governments and financial institutions, it participated in a large-scale financial program for low-credit small and medium-sized auto parts makers.
Separately, Hyundai Motor Group is actively helping small and medium-sized parts suppliers to stabilize management through a win-win cooperation program worth KRW 1.67 trillion. The main contents are the operation of a future growth fund to support new technology investment for suppliers, early payment of parts investment costs, and an emergency operation program for stabilizing the management of small and medium parts manufacturers.
For the second and third-tier small and medium-sized suppliers, a total of 455 billion won in funds and funds, including a win-win cooperation fund of 50 billion won and a win-win fund for second and third-tier suppliers of 100 billion won, a win-win operation fund, and a win-win mold facility fund. It is supporting partners by creating them.
In addition, it is helping to manage partner companies’ funds through early payment of over 1 trillion won or more for suppliers’ delivery on holidays such as Lunar New Year and Chuseok.
The Hyundai Motor Group is constantly striving for sustainable development through funding and win-win cooperation with parts suppliers. Expand the target of support to over 5,000 secondary and tertiary small and medium-sized suppliers that do not directly deal with the Hyundai Motor Group as well as primary suppliers, improve management and strengthen competitiveness, advance overseas, and support employment, and win-win between primary and secondary and tertiary suppliers We are implementing a virtuous cycle of shared growth by strengthening the cooperative management system.
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