Korea Trade Insurance Corporation has provided its first mutual growth trade finance support to suppliers of HD Hyundai Heavy Industries, marking the full-scale launch of a financing programme aimed at boosting the export competitiveness of South Korea's shipbuilding industry.
aimed at boosting the export competitiveness of South Korea’s shipbuilding industry.
The agency said that it had issued its first “Export Supply Chain Enhancement Guarantee” certificate to small and medium-sized partner companies working with HD Hyundai Heavy Industries in the shipbuilding sector, reported The Asia Business Daily.
A representative from Korea Trade Insurance Corporation said the initiative was launched to support the financial stability of suppliers facing rising funding pressures and to revitalise the shipbuilding ecosystem through balanced growth between large corporations and small and medium-sized enterprises.
The representative added that HD Hyundai Heavy Industries and Hana Bank had jointly provided KRW28bn (approx. 20m) in funding, which would serve as the basis for the corporation to extend up to KRW400bn in preferential guarantees to HD Hyundai Heavy Industries’ partner companies.
The first beneficiary, Mibu Heavy Industries, will receive KRW5bn in export financing under preferential terms, including a 100% guarantee ratio, a three-year exemption on guarantee fees and preferential interest rates.
A representative from HD Hyundai Heavy Industries said the programme would mark the beginning of broader financial support measures for suppliers that have faced difficulties securing financing.