Heo Jang, Deputy Minister of the Ministry of Economy and Finance, stated on May 19 that the Supply Chain Stabilization Fund's cooperative financing program should be utilized to strengthen stable partnerships among companies and enhance their crisis response capabilities.
During a signing ceremony for the Supply Chain Stabilization Fund's cooperation agreement held at the Korea Export-Import Bank, Heo met with representatives from major companies to discuss ways to strengthen the supply chain ecosystem and improve its structure.
He emphasized, "This signing ceremony marks the starting point for solidifying the domestic supply chain ecosystem through the cooperative financing program of the Supply Chain Stabilization Fund. We must strengthen the collaboration among large, medium-sized, and small enterprises across the entire supply chain, including import, production, and distribution, to enhance our ability to respond to supply chain uncertainties."
In March, the government established the 'Supply Chain Cooperative Financing Program' through the Supply Chain Stabilization Fund. This program aims to facilitate the flow of funds between large purchasing companies and small suppliers, thereby increasing liquidity across the supply chain.
The Ministry of Economy and Finance plans to strengthen the domestic supply chain based on cooperative financing. The signing ceremony aims to enhance collaboration in critical sectors such as secondary batteries and nuclear power, where the value chain of large and small enterprises is vital.
The Korea Export-Import Bank will play a role in providing financial support related to the supply and purchase of raw materials under this program. Participating large companies are required to recommend their collaborating small and medium-sized enterprises. Additionally, the bank will offer a preferential interest rate of up to 2.4 percentage points to collaborating small and medium-sized enterprises and increase the loan limit by 10% compared to the current level. In line with the government's regional development policy, an additional 0.2 percentage point interest rate reduction (within the 2.4 percentage point limit) will be applied to medium-sized and small enterprises located outside the capital region.
Participants remarked, "In light of the ongoing supply chain instability due to recent events in the Middle East, timely financial support through the fund has enabled us to establish a stable supply system. We will strive for further cooperative efforts with small and medium-sized partners following today's signing ceremony."
* This article has been translated by AI.
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