Hyundai Mobis (012330.KS) is launching a 500 billion won ($362 million) shared-growth guarantee program with Hana Bank and the Korea Technology Finance Corporation to help its suppliers secure stable financing.
Hyundai Mobis said on the 28th that it signed a shared-growth guarantee agreement with Hana Bank and the Korea Technology Finance Corporation at its headquarters in Yeoksam-dong, Seoul, to provide financial support for suppliers. Hyundai Mobis President Lee Kyu-suk, Hana Bank CEO Lee Ho-sung and Korea Technology Finance Corporation Chairman Kwon Hyung-taek attended the signing ceremony.
The agreement targets small and mid-sized suppliers that have strong technology and growth potential but struggle to raise funds because of low credit ratings or insufficient collateral. Under the deal, Hyundai Mobis and Hana Bank will contribute a combined 30 billion won, which the Korea Technology Finance Corporation will use to create a 500 billion won loan guarantee facility to help suppliers borrow from commercial banks.
The program screens applicants primarily on their technology and business viability rather than their financial statements. Smaller suppliers that previously had limited access to bank lending can borrow from Hana Bank at preferential rates of 3.9% to 4.9% a year, backed by guarantees from the Korea Technology Finance Corporation. The program begins full operation in September.
Hyundai Mobis said the support will lower financing costs for suppliers and help them expand research and development and production facility investment by improving liquidity. The company also expects the program to strengthen its supplier ecosystem in emerging businesses such as robotics and semiconductors.
"This shared-growth guarantee program is intended to support suppliers that have secured excellent technology but have found it difficult to secure growth opportunities because of financing conditions," Lee Kyu-suk said. "We will further solidify win-win cooperation to raise the self-sustaining capacity of the mobility industry as a whole."
