The Korea Technology Finance Corporation (Kibo) announced on July 30 that it has signed a memorandum of understanding with Hyundai Motor Company, Kia, and the Industrial Bank of Korea to provide financial support for semiconductor companies collaborating with Hyundai and Kia.
This agreement aims to enhance financial accessibility for Hyundai and Kia's partner semiconductor firms in response to the global supply chain restructuring and intensified technological competition, while also supporting the sustainable growth of the automotive semiconductor industry.
Under the agreement, Kibo will supply a total of 100 billion won in guarantee funds, which includes a special contribution of 2.5 billion won from Hyundai and Kia and 2.5 billion won from the Industrial Bank of Korea, along with 1 billion won in guarantee fee support.
Kibo will offer preferential benefits through the guarantee, including an increase in the guarantee rate from 85% to 100% for three years and a fixed guarantee fee of 0.5% for three years. The Industrial Bank of Korea will support a reduction of 0.5 percentage points in the guarantee fee for two years. Eligible companies can utilize technology guarantees without any guarantee fee burden for two years.
The support is targeted at new technology businesses that meet Kibo's technology guarantee requirements and are recommended by Hyundai and Kia in the semiconductor or display sectors, with a maximum support limit of 20 billion won per company.
Previously, Kibo signed a memorandum of understanding with Hana Bank on July 10 for a financial support program aimed at scaling up the semiconductor industry. Under that agreement, Kibo will provide a total of 100 billion won in guarantee fee support based on Hana Bank's guarantee fee support funds, along with a 0.3 percentage point reduction in guarantee fees for three years.
Kwon Hyung-taek, Kibo's chairman, stated, "We will continue to expand cooperation with relevant institutions to support the growth of technology-driven semiconductor companies and actively contribute to strengthening the competitiveness of the future automotive industry."
* This article has been translated by AI.
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