The Credit Guarantee Fund is collaborating with Hyundai Motor and Kia, along with eight banks, to support the development of next-generation mobility for auto parts companies.
On August 5, the Credit Guarantee Fund announced that it has signed a "cooperative financial support agreement for the development of next-generation mobility and the activation of overseas market entry" with Hyundai Motor, Kia, Kookmin Bank, Nonghyup Bank, Woori Bank, Hana Bank, Shinhan Bank, iM Bank, and Gyeongnam Bank.
Under this agreement, Hyundai Motor Group will contribute 8 billion won. The participating financial institutions will also contribute a total of 12 billion won. The Credit Guarantee Fund plans to support a total of 300 billion won in joint project guarantees for second and third-tier suppliers participating in Hyundai Motor Group's export projects.
Eligible companies will benefit from a 100% guarantee rate and a fixed guarantee fee rate of 0.8%. Through the support of the guarantee fees from the participating banks, the full guarantee fee will be waived in the first year, and a 0.3 percentage point reduction will be applied in the second and third years to alleviate financial burdens.
This support is significant as it represents a cooperative financial model where large corporations and financial institutions jointly raise funds to assist auto parts companies in transitioning to future vehicles.
A representative from the Credit Guarantee Fund stated, "We hope this agreement will provide practical assistance in securing funding for auto parts companies preparing to enter the future mobility market, and we will continue to work with large corporations and financial institutions to strengthen global competitiveness and foster a cooperative growth ecosystem."
* This article has been translated by AI.
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