Eximbank, Hyundai Motor sign $2.66 bil. program for future mobility business
Export-Import Bank of Korea Chairman and President Bang Moon-kyu and Hyundai Motor CEO Chang Jae-hoon pose at the bank's headquarters on Yeouido, Seoul, April 1, after signing a memorandum of understanding (MOU) to offer 3 trillion won ($2.66 billion) for the carmaker to successfully cope with automotive trends. Courtesy of Export-Import Bank of Korea
By Yi Whan-woo
The Export-Import Bank of Korea (Eximbank) signed a 3 trillion won ($2.66 billion) program with Hyundai Motor Group in support of Korea's top carmaker to take the lead in the global transition toward smart and eco-friendly cars.
The state-run policy lender said Monday a memorandum of understanding (MOU) was signed last week between Eximbank Chairman and President Bang Moon-kyu and Hyundai Motor CEO Chang Jae-hoon.
Under the MOU, the bank will offer financial support until 2023.
The fund will be used for research and development, facility investments in and outside Korea, merger and acquisition deals as well as other efforts that can help Hyundai Motor Group and its partners to take the initiative in future mobility.
The carmaker's partners include small- and mid-sized enterprises (SMEs), which the bank said it specifically took into account in the MOU to “build a sound ecosystem” for the future mobility market.
Bang vowed to play a role in helping Hyundai Motor Group “conquer the future market,” saying “No winners have yet been decided in the future mobility market.”
He lauded the world's fifth-largest carmaker for becoming what it is now in the international market, after producing the Pony, Korea's first domestically made car, in 1975.
Chang viewed the MOU will laid the groundwork for the firm to “accelerate its transition” into becoming a “smart mobility solution provider.”
“We will work closely to establish a foundation for sustainable growth,” he said.
The global car market is characterized by large investments from not only carmakers, such as Volkswagen and Toyota, but also from non-traditional players, including plane maker Boeing, IT giant Google and lithium-ion battery manufacturers CATL and LG.
In December 2020, Hyundai Motor Group announced a plan to investment 23.5 trillion won into its hydrogen, electrification and self-driving technologies.
Eximbank picked future mobility as one of its seven key areas in accordance with President Moon Jae-in's Korean New Deal aimed at reviving the pandemic-hit economy.
The six others are green energies such as hydrogen, solar and wind as well as 5G, healthcare and digital content.
The bank will make a total of 80 trillion won worth of investments by 2030.