KB Kookmin Bank Provides 200 Billion Won Financial Support to Hyundai Motor and Kia Partner Companies

KB Kookmin Bank announced on December 16 that it has signed a "Mutual Growth Business Agreement to Strengthen the Competitiveness of Hyundai Motor Group's Partner Companies" with Hyundai Motor Group and Korea Technology Finance Corporation.

This agreement follows the 100 billion won mutual growth business agreement signed with Hyundai Motor and Kia in March, and is designed to expand productive finance and strengthen mutual cooperation in order to provide more stable funding support to partner companies.

This financial support program uses 5 billion won contributed by Hyundai Motor and Kia as a resource to preferentially provide a special guarantee agreement worth a total of 100 billion won. Through this, KB Kookmin Bank, together with Hyundai Motor and Kia, has established a loan support system totaling 200 billion won. The support targets first-tier partner companies of Hyundai Motor and Kia, with each company eligible for loans of up to 5 billion won.

By combining additional interest rate discounts from KB Kookmin Bank, interest subsidies from Hyundai Motor and Kia, and exclusive guarantees from Korea Technology Finance Corporation, the financial burden on Hyundai Motor and Kia partner companies will be substantially eased. KB Kookmin Bank will provide full support for a 0.5 percentage point guarantee fee for three years to Hyundai Motor and Kia partner companies through a special contribution of 1.5 billion won. Korea Technology Finance Corporation will issue preferential guarantee certificates with a 100% guarantee ratio for three years. In addition, Hyundai Motor and Kia will deposit a total of 100 billion won with KB Kookmin Bank, and use the interest income generated from the deposit to support partner company loan interest at a rate of approximately 3.2 percentage points.

A KB Kookmin Bank official stated, "We hope this agreement will help small and medium-sized enterprises secure funds smoothly and grow stably," adding, "We will continue to fulfill our corporate social responsibility based on productive finance."