Korea Technology Finance Corporation Signs Financial Support Agreement for Partners with Hyundai Motor, Kia, and Kookmin Bank

Supply of 100 Billion Won in Agreement Guarantees
Strengthening Mutual Cooperation in the Auto Parts Industry

The Korea Technology Finance Corporation announced on December 16 that it has signed a "Mutual Growth Business Agreement for Strengthening the Competitiveness of Hyundai Motor Group Partners" with Hyundai Motor Company, Kia, and KB Kookmin Bank.

This agreement was established to ease the management burden of small and medium-sized auto parts companies, which are struggling due to a chain reaction of demand shocks such as shrinking exports to the United States caused by U.S. tariffs and declines in production and employment. The agreement also aims to strengthen mutual cooperation by supporting smooth financing for Hyundai Motor Group partners.

Busan Metropolitan City Nam-gu Korea Technology Finance Corporation Headquarters

Under the agreement, the Korea Technology Finance Corporation will provide a total of 100 billion won in guarantee support, using 5 billion won in special contributions from Hyundai Motor Company and Kia, and 1.5 billion won in guarantee fee support from Kookmin Bank as funding.

Through the agreement guarantee, the Korea Technology Finance Corporation will offer preferential benefits such as an increased guarantee ratio (from 85% to 100% for three years) and a fixed guarantee fee (0.5% for three years). Kookmin Bank will provide support for guarantee fees (0.5 percentage points for three years). In addition, Hyundai Motor Company and Kia plan to deposit a separate 100 billion won with Kookmin Bank to reduce loan interest rates for partner companies. The support targets are new technology businesses that meet the Korea Technology Finance Corporation’s technology guarantee requirements and are recommended by Hyundai Motor Group as partner companies.

Kim Joungho, Chairman of the Korea Technology Finance Corporation, stated, "This agreement is significant in that it promotes supply chain stability and mutual growth through financial support for partner companies, while also strengthening the competitiveness of the automotive industry. The Korea Technology Finance Corporation will continue to expand cooperation with related organizations to proactively respond to internal and external uncertainties and do its best to create an ecosystem based on mutual cooperation."