Korea hydrogen council launches $382 mn fund

The Korea H2 Business Summit, a business council established by South Korea’s leading conglomerates to invest in the hydrogen industry, launched a fund worth 500 billion won ($382 million) on Wednesday.

The aim of the fund is to construct a value chain that encompasses the production, distribution, and consumption of hydrogen energy and to promote the speedy commercialization of environmentally-friendly hydrogen technology. 

The council hosted the annual Investor Day at the Seoul Dongdaemun Design Plaza (DDP) and announced the Korea H2 Business Summit Fund. The fund will be managed for 10 years before liquidation.

Mirae Asset Securities Co. will seek investors alongside Stonepeak Infrastructure Partners and Noh & Partners through the year’s end. 

Bahn Sang-woo, fund manager at Mirae Asset Securities, said the firm is aiming for an 8% annual yield. 

“About 70% of the capital will be allocated to the infrastructure and the rest 30% to technology,” Bahn explained. 

More than a dozen conglomerates joined forces last September to kickstart the business council with the aim of gaining an upper hand in the global hydrogen market. 

Chief executives of the country’s 15 business groups officially launched the council in September last year.

Hyundai Motor Co., SK, POSCO, Hanwha, Hyosung, and more are members of the hydrogen council. 

The companies will together inject a total of 43.4 trillion won into the hydrogen ecosystem through 2030.

Looking at the government's efforts, the Ministry of Trade, Industry and Energy is poised to loosen restrictions on hydrogen projects. 

Policy financial institutions such as Korea Development Bank plans to provide incentives, including lower interest rates and higher limits on lending, to corporations that invest in the hydrogen fund. 

Write to Jeong Min Nam at peux@hankyung.com
Jee Abbey Lee edited this article.