HD Construction Equipment is launching a financial guarantee program totaling 85 billion won to help suppliers maintain stable operations.
According to industry officials on Wednesday, the company signed a memorandum of understanding the previous day at Hana Bank’s headquarters in central Seoul with Hana Bank and the Korea Credit Guarantee Fund to support shared growth in the construction equipment industry.
Attendees included Hana Bank CEO Lee Ho-seong, Korea Credit Guarantee Fund standing director Chae Byeong-ho, HD Construction Equipment President Moon Jae-young and supplier council head Kim Do-wan.
The agreement is intended to provide practical support to suppliers facing funding difficulties amid recent economic uncertainty. The partners said they expanded the program after strong demand quickly depleted an existing shared-growth fund.
Under the deal, HD Construction Equipment and Hana Bank will jointly create a fund of up to 5 billion won. Using that as a source of funding, the Korea Credit Guarantee Fund will provide guarantees of up to 85 billion won when suppliers seek loans from financial institutions.
The program will operate in two tracks: a 40 billion won “joint project guarantee” for suppliers participating in future innovation projects such as new model development and mass production, and a 45 billion won “shared-growth financial support agreement guarantee” open to all suppliers. The program includes discounted guarantee fees and preferential interest rates.
“Helping our suppliers prepare for the future without wavering, even in an uncertain external environment, is the true value of shared growth,” Moon said. He added that he hopes the support will strengthen competitiveness across the construction equipment industry through cooperation with suppliers.
* This article has been translated by AI.
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