As the global race to secure battery supply chains continues, South Korea will contribute 38 trillion won ($29 billion) in finance to enhance its battery industry over the next five years, the government announced on Wednesday.
According to a joint statement from many ministries, as of 2022, South Korean battery companies such LG Energy Solution, Samsung SDI, and SK On, a division of SK Innovation, held a 49% share of the worldwide battery industry, excluding China.
It further stated that diversification was essential due to their reliance on other nations for essential materials.
In order to protect the rights to mine minerals and other battery materials, the nation intends to offer tax breaks and credit help to South Korean businesses who invest abroad. It also wants to bolster financial assistance for businesses that recycle and refine minerals.
Additionally, it intends to expand the amount of money that organisations like the Export-Import Bank of Korea lend, guarantee, and insure battery industry companies, particularly those who invest in North America to fulfil requirements for tax breaks under the US Inflation Reduction Act (IRA).
As sales of electric vehicles decline, South Korean battery companies have revised down their projections for 2024 sales, in part because consumer auto finance expenses have increased.
On the other hand, the statement stated that the announced steps aimed to raise the competitiveness of the nation’s secondary battery industry to the top level in the world over the long run.
In addition, South Korea’s Mirae Asset Securities announced on Tuesday that it will purchase Sharekhan, the Indian retail brokerage division of French bank BNP Paribas, for 487 billion won ($370.11 million).
Exchange papers revealed that BNP Paribas is selling a 72.76% share in Sharekhan to investment banking and stock brokerage company Mirae Asset for about 288 billion won.
In addition, it would pay around 199 billion won to acquire a 99.9% share in Human Value Developers in India, per an exchange filing. Sharekhan is owned by Human Value Developers to the tune of 27.24%.
The transaction takes place at a moment when retail participation in the Indian stock market is at an all-time high and shares are trading at record highs.
Without providing any other information, BNP Paribas stated in a statement that it planned to sell Mirae its whole shareholding in Sharekhan Group.
The agreement “seeks to pursue Indian business growth by acquiring a local brokerage in light of the structural long-term growth potential of the Indian securities industry” , according to the documents.
