Business Agreement Signed to Ease Financial Burden on Automotive Export Companies
Tangible Financial Benefits Including Preferential Loan Rates and Full Guarantee Fee Support
On the 18th, at the DY Auto headquarters located in Asan, Chungnam, a commemorative photo was taken at the business agreement ceremony for 'Financial Support to Strengthen the Export Supply Chain of the Automotive Industry' with (from right in the photo) Lee Hoseong, CEO of Hana Bank, Sung Kim, President of Hyundai Motor Group, Kim Jungkwan, Minister of Trade, Industry and Energy, and Jang Youngjin, President of Korea Trade Insurance Corporation. Hana Bank Photo by Hana Bank
Hana Bank announced on the 19th that it has signed a Financial Support Agreement to Strengthen the Export Supply Chain of the Automotive Industry together with Hyundai Motor and Kia, and Korea Trade Insurance Corporation.
This agreement was established to respond to external economic uncertainties caused by U.S. tariff measures and to promote mutual cooperation between large corporations and small- and medium-sized enterprises (SMEs) by strengthening the export supply chain of the domestic automotive industry. To this end, Hana Bank will contribute 30 billion KRW and Hyundai Motor and Kia will contribute 10 billion KRW, for a combined total of 40 billion KRW. Together, the two companies will jointly provide financial support and liquidity totaling 630 billion KRW.
The support will be provided to partner companies recommended by Hyundai Motor and Kia, who will receive tangible financial benefits such as preferential loan interest rates and 100% guarantee fee support. In addition, Hana Bank has agreed to offer ESG consulting services to help export companies cope with the increasing global supply chain ESG (Environmental, Social, and Governance) regulations.
The signing ceremony, held on this day at the DY Auto headquarters in Asan, Chungnam, was attended by Kim Jungkwan, Minister of Trade, Industry and Energy; Sung Kim, President of Hyundai Motor Group; Jang Youngjin, President of Korea Trade Insurance Corporation; and Lee Hoseong, CEO of Hana Bank. The attendees toured the production facilities of DY Auto, the first company to be issued a guarantee certificate, and expressed their gratitude to the employees working on site.
Kim Jungkwan, Minister of Trade, Industry and Energy, stated, "The fact that exports have remained in positive territory until July this year despite unprecedented uncertainty is thanks to the tireless efforts of business leaders at the export frontlines. In particular, we will continue to implement follow-up support measures such as resolving export challenges, entering alternative markets, and providing tax and financial support in response to tariff measures. We will also push forward strategies to significantly enhance the fundamental competitiveness of our industries without delay."
Lee Hoseong, CEO of Hana Bank, said, "This agreement was established to provide practical financial support to automotive industry exporters experiencing management difficulties due to recent U.S. tariff measures. As a specialized foreign exchange bank, Hana Bank will continue public-private cooperation to serve as a reliable partner for export companies."
Previously, in April, Hana Financial Group launched an emergency financial support program totaling 6.3 trillion KRW for SMEs and small business owners expected to face management difficulties due to the U.S. reciprocal tariff measures. With ongoing volatility in the financial and foreign exchange markets anticipated as a result of the U.S. tariff policy, Hana Bank supplied 6 trillion KRW in emergency liquidity for SMEs and small business owners, and provided an additional 300 billion KRW in new funds with preferential interest rates of up to 1.9% to help alleviate the financial burden of small business owners struggling with sluggish domestic demand and reduced consumption.
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