Hyundai Motor, KDB launch fund to groom mobility startups

South Korean auto conglomerate Hyundai Motor Group has partnered with state lender Korea Development Bank (KDB) to create a fund of 74.5 billion won ($66.8 million) to back future mobility startups in Korea.

Hyundai Motor Group said on Monday that it has signed a memorandum of understanding (MOU) with KDB to form Zer01ne Fund 2, focused to fund promising start-ups dedicated to future mobility, eco-friendly cars, and AI-based connected cars as well as venture companies with cutting edge mobility technologies such as urban air mobility (UAM), and Purpose Built Vehicle (PBV).

Zero1ne Fund 2 would run on initial capital of 74.5 billion won in total, of which 18 billion won would be put up by Hyundai Motor, 12 billion won by Kia Corp., and 5 billion won by Hyundai Motor Securities. KDB invested 20 billion won and Shinhan Bank 3 billion won. Other Hyundai Motor Group affiliates and partners also took part in the funding.

This is the second fund launched under Hyundai Motor Group’s open innovation platform “Zero1one,” which started in 2018 with a view to creating an ecosystem to nurture SMEs and startups in the future mobility industry. The first fund was formed on 10 billion won.

The second fund is led by the country’s second largest conglomerate and key policy bank to groom the value chain in future mobility.

Hyundai Motor Group will not stop in funding. Beneficiaries will also be invited to various marketing events of Hyundai Motor Group for startups such as roundtable discussions, demo day events, and conferences.

Hyundai Motor Group will also cooperate with KDB in sharing knowledge in eco-friendly mobility trends, and establishing systems for co-investments and jointly raising funds for growth.

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