Taekwang Industrial Supports 50 Billion KRW for Win-Win Management
[Asia Economy Reporter Hwang Yoon-joo] Taekwang Industrial has launched a fund support initiative worth 50 billion KRW to assist partner companies facing financial difficulties due to the economic downturn caused by the novel coronavirus disease (COVID-19).
On the 28th, Taekwang Industrial announced that it signed a 'Win-Win Cooperation Agreement for Financial Support of Partner Companies' together with Shinhan Bank. Taekwang Industrial will deposit 50 billion KRW, which Shinhan Bank will use as capital to provide new loans at low interest rates to Taekwang Industrial’s partner companies.
Taekwang Industrial recognized that many small and medium-sized partner companies are in severe financial crises and urgently raised funds to alleviate the loan interest burden on these partners.
The support targets about 100 small and medium-sized partner companies of Taekwang Industrial, with loans available up to 500 million KRW per company. An automatic interest rate reduction of 1.25%, supported by Taekwang Industrial, will be applied, and additional interest rate reductions can be obtained through Shinhan Bank’s ancillary transaction performance.
CEO Hong Hyun-min stated, "We hope this financial support agreement will provide practical help to the cash flow of our partner companies," adding, "In this difficult environment of economic recession and credit crunch, Taekwang and its partners will strive for mutual growth by turning this crisis into an opportunity for learning and exploring various ways to grow together."
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Meanwhile, Taekwang Industrial has also taken the lead in sharing difficulties not only with its partners but also with small business owners and small and medium enterprises. Since March, the company has been offering a 30% rent reduction for three months to small business owners and SMEs located in its buildings, and in the Daegu and Gyeongbuk regions, it has provided a 70% reduction without any monthly cap.
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