KEXIM to Establish 250 Billion Won Fund Focused on Core Minerals and Energy

[Financial News] The Export-Import Bank of Korea (KEXIM) announced on the 3rd that it will create a 250 billion won fund focused on investments in core minerals and energy. Part of the investment will come from the Supply Chain Stabilization Fund.
The Supply Chain Stabilization Fund was established within KEXIM under the Framework Act on Supply Chain Stabilization Support for Economic Security, as part of a government-wide response system to address global supply chain crises. The fund was officially launched in September last year.
For this fund, the investment ratio from the Supply Chain Stabilization Fund will be raised to 40%, with 100 billion won contributed by the fund and the remainder to be sourced from public and private investors. After selecting an asset management company and completing the fund management committee review, the fund is scheduled to be established in the first half of next year.
KEXIM plans to implement investment incentives by providing a portion of the profits generated from supporting 'supply chain stabilization leading enterprises' in the core minerals and energy sectors to the asset management company.
The fund will invest in all stages of the value chain for core minerals and energy, including production, processing, transportation, and storage. This is expected to help secure essential materials for key industries and ensure stable energy supplies, thereby contributing to overall supply chain stabilization.
Notably, the fund will target not only refining of core minerals such as rare earth elements (REE), which are concentrated in certain countries, and resource recovery from spent batteries to extract lithium, nickel, and cobalt, but also Air Transportation Services, Maritime Transport Services, and Logistics Business needed for resource transport and storage.
A KEXIM official stated, "With intensifying competition among countries to secure resources and rising geopolitical risks, we aim to encourage private investment in the core minerals and energy sectors, where supply uncertainty is high." The official added, "If private investment becomes more active in the future, we will also pursue comprehensive package support, including joint investment, loans, and guarantees."
taeil0808@fnnews.com Kim Tae-il Reporter