Hana Bank to Provide Up to 85 Billion Won in Support for HD Construction Equipment Suppliers

Hana Bank said April 30 it signed a business agreement with HD Construction Equipment and the Korea Credit Guarantee Fund to support shared growth in the construction equipment industry.

The agreement aims to help promising small and midsize companies in the sector grow, while building a public-private cooperation framework to support next-generation technology development and expand exports.

Under the deal, Hana Bank and HD Construction Equipment will set up a special contribution fund of up to 5 billion won — 4 billion won from Hana Bank and 1 billion won from HD Construction Equipment — and use it to pursue financial support totaling up to 85 billion won. The partners plan to contribute 1 billion won first and then increase the amount in stages depending on how quickly the fund is used.

Support will be offered to partner companies recommended by HD Construction Equipment. Benefits include preferential guarantee coverage from the Korea Credit Guarantee Fund of up to 100%, reduced guarantee fees, and lower financial costs through loan-rate cuts and preferential exchange rates.

Lee Ho-seong, president of Hana Bank, said the agreement was designed to provide practical financial benefits to small and midsize construction equipment companies struggling with high oil prices and rising raw material costs. He said the bank will continue expanding support to strengthen the stability and competitiveness of export-oriented small and midsize firms.