S.Korea to pour $26 bn in UK’s renewables, infrastructure
Bo-Hyung Kim
Nov 23, 2023 (Gmt+09:00)
UK Secretary of State for Business and Trade Kemi Badenoch (left), Shinhan Bank CEO Jung Sang-hyuk sign a memorandum of understanding at Mansion House on Nov. 22 (Courtesy of Shinhan) South Korea’s sovereign wealth fund, banks and other private sector companies plan to pour £21 billion ($26.3 billion) in renewables, infrastructure and financial services in the United Kingdom.
With foreign direct investment from Korea standing at £1.9 billion in 2021, the investment package shows the strength of the trading relationship between the two nations and will create more than 1,500 skilled jobs in the UK, its Department for Business and Trade stated.
Sovereign wealth fund Korea Investment Corporation (KIC) plans to invest £9.7 billion in the UK by 2033, focusing on renewable energy, fintech and life sciences, according to the statement.
State-owned Korea Development Bank (KDB) will deploy £3 billion through their operations in the UK over the next five years. The bank’s financial businesses there will include syndicated loans, project finance, fixed-income investments, trade finance, derivatives and venture capital.
KB Kookmin Bank will allocate £2 billion over the next three years for business expansion in the UK, while Hana Financial Group will invest £2.5 billion in project finance, green infrastructure, investment banking and securities in the country over the next five years.
Shinhan Bank signed a non-binding agreement with the UK to invest more than £1 billion in the infrastructure and environmental, social and governance (ESG) sectors in the European country over the next five years. Shinhan could increase the total investment to £2 billion via collaborations with its affiliates.
NongHyup Bank plans to open its first UK branch in London, of which assets are set to grow to £700 million over the next seven years. The new branch will be the bank's first overseas FX trading desk, according to the statement.
In addition, Korea’s Hanwha Aerospace Co. and Bristol-based Vertical Aerospace Ltd. will expand their partnership, expected to be valued at $1 billion.
The contract will include the engineering and manufacturing of advanced tilt and blade-pitch systems, essential components for Vertical’s flagship electric vertical take-off and landing (eVTOL) aircraft, the VX4.
Write to Bo-Hyung Kim at kph21c@hankyung.com Jihyun Kim edited this article.