Hyundai Motor Securities Selected as Delegated Manager for Mother Fund Disaster Safety Sector

First Case of Securing Delegated Management Status for Policy Funds as Sole General Partner

Hyundai Motor Securities announced on September 1 that it has been selected as the final delegated management company in the disaster safety sector of the "Mother Fund (Tourism·Sports·National Safety) Occasional Investment Project for June 2026," organized by Korea Venture Investment Corp. With this selection, Hyundai Motor Securities will receive a 5 billion won commitment from the Mother Fund and will establish the "HMS Advanced Safety S.A.F.E. New Technology Venture Investment Association (tentative name)" with total assets of 10.5 billion won.

The Mother Fund refers to a fund that invests not directly in individual companies but indirectly through capital commitments to venture funds. In Korea, it typically means a fund to which the government commits capital as a means to foster targeted industries by investing in venture capital firms.

This marks the first time Hyundai Motor Securities has secured delegated management status for policy funding as the sole General Partner (GP). Expanding beyond previous Co-GP methods in government policy funds, Hyundai Motor Securities will independently be responsible for the formation, management, and investment decision-making of the new association.

The new association will invest more than 60% of total assets in companies operating within the disaster safety industry, utilizing advanced technologies such as artificial intelligence (AI), drones, and robotics. Main investment targets include: companies specially classified under the Disaster Safety Industry Promotion Act, businesses with 10% or more of their revenue derived from disaster safety operations, and firms participating in projects to vitalize the disaster safety industry under the Ministry of the Interior and Safety.

Hyundai Motor Securities explained that the fund's investment scope will span the entire safety cycle—from risk detection to prediction, inspection, control, and response—which it has set as 'S.A.F.E' (▲S (Sensing & AI: detection and prediction) ▲A (Advanced Robot: unmanned hazardous processes) ▲F (Field Protection: site control) ▲E (Emergency Response: response actions)).

Within this framework, particular allocation priority will be given to the 'S·A' domains: pre-incident fields such as prediction/inspection and the unmanned operation of hazardous processes, taking into account technology gaps and scalability considerations. In the short term, the plan is to invest in technologies that have already completed on-site validation; in the mid to long term, the strategy aims to draw new AI, robotics, and drone technology companies into the disaster safety sector.

Notably, Hyundai Engineering & Construction, the end-user and industry partner in disaster safety, will participate in the new association as an anchor limited partner (LP). Hyundai Engineering & Construction plans to connect actual large industrial sites across construction, plant, energy, and nuclear power, as well as demonstration channels like "H-Safe Open Innovation." Meanwhile, Hyundai Motor Securities will handle financial due diligence, investment structuring, follow-on investments, and IPO-linkage, taking primary responsibility for investment decisions.

Hyundai Motor Securities emphasized that, including Hyundai Engineering & Construction, all fund sponsor commitments have been completed. The fund will total 10.5 billion won, combining 5 billion won from government capital and 5.5 billion won from private capital, and will begin investing accordingly.

A Hyundai Motor Securities representative stated, "The goal of this association is to establish a virtuous cycle that attracts excellent technology companies in response to on-the-ground demand, where each success story draws in even better companies. Our collaboration with Hyundai Engineering & Construction, which has always prioritized safety, will be the key driver in making this virtuous cycle a reality."

This content was produced with the assistance of AI translation services.