Shinbo supports Hyundai Mobis partner companies with 23.7 billion KRW 'Joint Project Guarantee'

Overview of Hyundai Mobis's Joint Project for Mass Production of Core Components Leading Future Automobiles. Photo by Korea Credit Guarantee Fund

[Asia Economy Reporter Song Seung-seop] The Korea Credit Guarantee Fund announced on the 3rd that it will support Hyundai Mobis partner companies with a 23.7 billion KRW scale ‘Joint Project Guarantee’.

The target companies are those participating in Hyundai Mobis’s ‘Future Automobile Leading Core Parts Mass Production Project.’ This project involves the mass production of parts for electric vehicles and autonomous driving systems. The 23.7 billion KRW support fund provided to 15 partner companies will be used for technology development and securing raw materials.

The support method is the joint project guarantee. This product evaluates the business feasibility of projects jointly promoted by large corporations and partner companies, then provides guarantees to the partner companies. Unlike the existing method that mainly reviews past performance such as individual company sales and financial ratings, this approach examines the innovativeness and growth potential of the joint project. By using the joint project guarantee, partner companies with low credit ratings or weak financial ratios can also receive support.

Joint Project Guarantee Operation Structure. Photo by Korea Credit Guarantee Fund

However, the joint project guarantee is only available for projects related to future innovative businesses such as eco-friendly mobility, next-generation fuel cell businesses, and Korean New Deal-related projects. Since the system was introduced last year, a total of 26.4 billion KRW has been supported to 16 partner companies of Hyundai Motor and Daewoo Shipbuilding & Marine Engineering. Support for Hyundai Mobis partner companies is the third case.

A representative from the Korea Credit Guarantee Fund stated, “Even companies whose sales performance or credit rating has temporarily declined can receive guarantee support through the joint project guarantee if the project’s business feasibility is excellent,” and emphasized, “In the future, we will continue to expand the scope and scale of support to strengthen the competitiveness of key national industries such as steel and chemicals, beyond the automobile and shipbuilding sectors.”