Companies Lead and Government Supports... Launch of 500 Billion Won 'Hydrogen Fund'

On the 8th, key company heads attending the 'H2 Business Summit' held ahead of the opening of the '2021 Hydrogen Mobility+ Show' at Kintex in Goyang, Gyeonggi Province, are taking a group photo. From the left: Heo Jeong-seok, Vice Chairman of Iljin Holdings; Choi Yoon-beom, Vice President of Korea Zinc; Lee Gyu-ho, Vice President of Kolon Group; Park Jung-won, Chairman of Doosan Group; Heo Se-hong, President of GS Group; Shin Dong-bin, Chairman of Lotte Group; Choi Tae-won, Chairman of SK Group; Chung Eui-sun, Chairman of Hyundai Motor Group; Choi Jung-woo, Chairman of POSCO Group; Kim Dong-kwan, President of Hanwha Group; Jeong Ki-sun, Vice President of Hyundai Heavy Industries Holdings; Cho Hyun-sang, Vice Chairman of Hyosung Group; Koo Dong-hwi, CEO of E1; Kim Sang-beom, Chairman of Isu Group. /Goyang=Photo by Kang Jin-hyung aymsdream@

[Asia Economy Sejong=Reporter Dongwoo Lee] A hydrogen fund worth 500 billion KRW will be established to revitalize investment in the domestic private hydrogen sector.

On the 6th, according to the Ministry of Trade, Industry and Energy, the 'Korea H2 Business Summit,' a private hydrogen council led by major domestic companies such as Hyundai Motor, SK, and POSCO, held the '2022 H2 Investor Day' at Dongdaemun Design Plaza (DDP) in Seoul and announced the launch of the hydrogen fund.

The hydrogen fund will be raised to the scale of 500 billion KRW through contributions from Korea H2 Business Summit member companies and external investors, and will be operated for 10 years before liquidation.

Mirae Asset, the master fund manager, along with co-investment partner Stonepeak and sub-fund manager No & Partners, plans to recruit investors by the end of this year and begin full-scale investment in the hydrogen sector from early next year. The hydrogen fund will invest in building domestic and international hydrogen production, distribution, and storage infrastructure, as well as developing core hydrogen technologies.

The government plans to strengthen policy support such as financial assistance and regulatory innovation to ensure the successful establishment of the hydrogen fund.

Policy financial institutions such as the Korea Development Bank will provide incentives such as interest rate reductions and expanded loans to projects and companies invested in by the hydrogen fund, while energy public institutions such as Korea Electric Power Corporation (KEPCO) will support R&D and demand discovery for small and medium-sized enterprises and mid-sized companies targeted by the hydrogen fund.

The Ministry of Trade, Industry and Energy will identify and ease regulations related to hydrogen projects and new technology development. At the event, Korea H2 Business Summit member companies, the Korea Trade Insurance Corporation, Export-Import Bank of Korea, Korea Development Bank, and energy public institutions such as KEPCO, Korea National Oil Corporation, and Korea Gas Corporation signed a cooperation agreement containing these details.

Park Il-jun, the 2nd Vice Minister of the Ministry of Trade, Industry and Energy, said, "Hydrogen is a key energy source that can simultaneously address the carbon neutrality trend and the practical challenge of energy security," adding, "We will continue to provide wholehearted support so that private investment can be fully activated through the establishment of the hydrogen fund."