Financial Sector and SK Hynix Agree to Collaborate on $3 Billion Funding for Future Investments

[Asia Economy Reporter Kim Hyo-jin] The financial sector has agreed to cooperate in raising $3 billion in funding over five years from this year through 2025 with SK Hynix for global future investments.

On the 19th, the Financial Services Commission held a "Semiconductor Industry Development Industry-Finance Cooperation Program Agreement Ceremony" at SK Hynix's Icheon Campus in Icheon, Gyeonggi Province, announcing this agreement.

This agreement ceremony was organized to establish a cooperative system for raising necessary funds for global future investments and creating a materials, parts, and equipment (SoBuJang) semiconductor fund between SK Hynix and financial institutions belonging to the "Overseas M&A and Investment Joint Support Council" (KDB Industrial Bank, Korea Eximbank, NH Nonghyup Bank).

The industrial sector and financial sector, including the Korea Chamber of Commerce and Industry, the Federation of Korean Mid-sized Enterprises, and the Korea Federation of SMEs, formed a council to strengthen cooperation on overseas M&A and investment fund raising.

The financial authorities expect that through such cooperation between the industrial and financial sectors, foreign currency funds necessary for large-scale corporate investments to lead future markets can be stably procured.

Building on last year's establishment of a SoBuJang fund worth 400 billion KRW based on government finances, the government plans to create an additional fund worth 500 billion KRW this year.

At this agreement ceremony, it was decided that 100 billion KRW out of the 500 billion KRW fund contributed by the parties to the agreement will be formed as a "SoBuJang Semiconductor Fund" focused on investing in small and medium-sized semiconductor companies.

SK Hynix will contribute 30 billion KRW, and the Industrial Bank and Eximbank will each contribute 10 billion KRW.

Financial Services Commission Chairman Eun Sung-soo evaluated this agreement as a "bold investment to secure and discover future growth engines," and said, "It shows a meaningful change occurring in Korea's industrial and financial sectors, as the financial sector has successfully supplied funds that individual financial institutions would find difficult to provide by actively sharing risks."