Preferential Interest Rate of 4.1% Offered
Mutual Growth Fund to Provide Substantial Financial Support for Ulsan Partners
Korea Zinc, in partnership with BNK Gyeongnam Bank, has established a mutual growth fund worth 20 billion KRW to provide large-scale financial support to its partner companies in the Ulsan region.
On the morning of the 1st, at Lotte Hotel Ulsan in Namgu, Ulsan Metropolitan City, Baek Soonheum, Head of Management Group at Korea Zinc (left), and Kim Taehan, President of BNK Gyeongnam Bank, posed for a commemorative photo after signing a financial support agreement for mutual growth between Korea Zinc and its partners. Korea Zinc
On the morning of September 1, at Lotte Hotel Ulsan in Namgu, Ulsan Metropolitan City, Korea Zinc signed a "Financial Support Agreement for Mutual Growth between Korea Zinc and Its Partners" with BNK Gyeongnam Bank. The signing ceremony was attended by key executives from both companies, including Baek Soonheum, Head of Management Group (President) at Korea Zinc, and Kim Taehan, President of BNK Gyeongnam Bank.
Under this agreement, Korea Zinc will deposit 20 billion KRW with BNK Gyeongnam Bank to establish the mutual growth fund. The mutual growth fund is a system under the "Act on the Promotion of Win-Win Cooperation between Large Enterprises and Small and Medium Enterprises," in which a large company and a bank jointly create a fund that enables the bank to provide loans and preferential interest rates to the large company's partner firms.
Based on the 20 billion KRW deposited by Korea Zinc, BNK Gyeongnam Bank will offer financial support, such as loans, to Korea Zinc's partner companies based in the Ulsan region. These partner companies can benefit from preferential interest rates of up to 4.1% per annum, allowing them to secure operating and investment funds at lower financing costs. The preferential annual interest rate of 4.1% is a highly favorable condition compared to those offered by other banks.
Since most of Korea Zinc's partner companies are located in Ulsan, utilizing BNK Gyeongnam Bank, a regional bank, can promote mutual growth among local economic stakeholders and make a tangible contribution to the development of the regional economy. This is cited as a key reason behind Korea Zinc's decision to enter into the agreement with BNK Gyeongnam Bank. As of the end of March, BNK Gyeongnam Bank operates 24 branches in Ulsan, making it the bank with the closest ties to the Ulsan regional economy.
A Korea Zinc representative stated, "By establishing this 20 billion KRW mutual growth fund with BNK Gyeongnam Bank, we expect to provide more effective and efficient financial support to our partner companies. The fact that a leading company and a major financial institution in the Ulsan region have joined hands will also make a real contribution to regional mutual growth and economic development."
Meanwhile, Korea Zinc has also established a separate 20 billion KRW mutual growth fund with a commercial bank to provide financial support to its partner companies. Including the fund created with BNK Gyeongnam Bank, the total liquidity supplied to partner companies amounts to 40 billion KRW. The Korea Zinc representative added, "As a national key industry representing Ulsan and the only domestic strategic mineral supply base, Korea Zinc will spare no effort or support to ensure sustainable growth together with its partner companies."
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