Lee Hyo-jin covers the Bank of Korea, the banking industry and broader financial news. Her previous beats include foreign affairs, North Korea and general reporting on Korean society.
Hana Financial to set up $340 mil. fund to back renewable energy, AI industries
Hana Financial Group headquarters in downtown Seoul / Courtesy of Hana Financial Group
By Lee Hyo-jin
Hana Financial Group will set up a 500 billion won ($340 million) infrastructure fund to invest in renewable energy and artificial intelligence (AI), the company said Monday.
The fund will support major projects tied to national strategic priorities, including renewable energy and AI-related digital infrastructure.
One of the key renewable energy investments will be an offshore wind power project in Wando, South Jeolla Province, one of the largest eco-friendly energy developments in Korea. Electricity generated from the wind farm is expected to supply power to AI data centers and advanced industrial facilities in the North and South Jeolla provinces.
In the AI and digital infrastructure sector, the fund plans to invest in major AI hub centers in Bucheon, Gyeonggi Province, and in Incheon.
The company said the infrastructure fund will go beyond simple equity investments by participating in projects at the early development stage. Through early investments, the group aims to secure high-quality assets and obtain financing arrangement rights when projects later require large-scale funding, a strategy that is expected to boost returns.
Of the total 500 billion won, Hana Bank will provide the bulk of the funding with 400 billion won.
Other group affiliates participating in the fund include Hana Securities with 50 billion won and several other units providing a combined 50 billion won — Hana Life Insurance with 20 billion won, Hana Capital with 17 billion won, Hana Insurance with 10 billion won and Hana Alternative Asset Management with 3 billion won.
"The establishment of the 500 billion won fund will serve as a key example of productive finance that goes beyond generating profits by supplying capital to the real economy that underpins the nation’s future industries," a Hana Financial Group official said. "We will continue to invest in innovative growth sectors such as renewable energy and AI infrastructure."