Hana Bank said on the 28th that it has signed a comprehensive agreement with Hyundai Mobis (012330) and the Korea Technology Finance Corporation to support cooperation and shared growth between large companies and smaller suppliers, aiming to reduce financing costs for small and medium-sized enterprises.
The agreement is designed to help small suppliers to Hyundai Mobis that struggle to raise funds because they lack credit standing or collateral, and to strengthen the competitiveness of the future mobility industry.
Hana Bank and Hyundai Mobis will jointly contribute a combined 30 billion won to the Korea Technology Finance Corporation — 24 billion won from the bank and 6 billion won from the automotive parts maker — to run a guarantee program that will supply up to 500 billion won in liquidity. The program will cover small suppliers recommended by Hyundai Mobis, providing funds for research and development, facility investment and working capital to help them stabilize operations quickly.
The guarantee program raises the coverage ratio to 100% for three years and cuts the guarantee fee rate by 0.4 percentage points over the same period. Guarantee fees for the first year will be covered in full.
Hana Bank also plans to continue supporting smaller companies with physical artificial intelligence technologies such as robotics and autonomous driving.
"The three parties will work closely together so that small and medium-sized companies with technology and potential do not lose their chance to grow," Hana Bank CEO Lee Ho-sung said. "We will keep working to build a virtuous cycle of capital through expanded productive finance, while supporting a recovery in the real economy and the growth of smaller companies."
