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Hyosung Group and the Linde Group are set to build the world's largest liquid hydrogen plant capable of producing 13,000 tons a year.
The two companies have signed an MOU to invest 300 billion won by 2023 to create a value chain for the production, transportation of liquid hydrogen.
Among the agreements was to establish a 30,000 square meters liquid hydrogen plant in Ulsan, which is expected to produce 13,000 tons of liquid hydrogen a year--the largest production from a single plant worldwide.
That amount can supply 100,000 hydrogen vehicles.
Construction will start in the first quarter of next year and is expected to be completed in 2022.
The MOU was signed by Cho and Linde Korea Chairman Sung Baek-seok at the company's headquarters in Seoul, Tuesday.
The liquid hydrogen produced will be used in vehicles, drones, cranes and vessels.
The two firms also agreed to build 120 liquid hydrogen charging stations around South Korea.
Hyosung has a 40 percent market share in Korea's hydrogen filling station industry, with 15 stations nationwide.
The Korean government hopes to enhance the hydrogen economy with tax breaks and subsidies for the manufacturing of 6.2 million hydrogen vehicles by 2040, and the construction of 1,200 hydrogen filling stations.
