1 Trillion Steel Fund Established... "SME Management Stability and Employment Retention"

Ministry of Industry Holds Steel Win-Win Cooperation Fund Agreement Ceremony and Awards
Steel Association, POSCO, Hyundai Steel, and IBK Industrial Bank Sign Agreement

[Asia Economy Reporter Moon Chae-seok] The Ministry of Trade, Industry and Energy announced that it will establish a 100 billion KRW-scale 'Steel Win-Win Cooperation Fund' together with the Korea Iron & Steel Association and companies.

On the 17th, starting at 3 p.m., the Ministry and the Association will hold the 'Steel Win-Win Cooperation Fund Agreement Ceremony and Meritorious Service Award Presentation' at the InterContinental Seoul COEX.

The Association, POSCO, Hyundai Steel, and IBK Industrial Bank will sign the fund agreement. They recognized the need for support as small and medium-sized enterprises in the steel industry have recently faced liquidity difficulties due to decreased sales.

The fund, totaling 100 billion KRW, will be used for urgent management stabilization funds and employment retention for steel SMEs.

Loans will be supported through IBK Industrial Bank at interest rates at least 1 percentage point lower than market rates, with a maximum limit of 1 billion KRW per company.

Thanks to POSCO, Hyundai Steel, and others cooperating to expand the fund size, the support interest rate could be significantly lowered.

Typically, win-win cooperation funds between large and small-medium enterprises are mostly established by a single large company.

A portion of the total fund amount will be used to support companies that do not trade with large corporations. Only a recommendation from the Association is required.

Minister Sung Yun-mo of the Ministry of Trade, Industry and Energy said, "The agreement is a model case that can mitigate the shock to the industrial ecosystem caused by COVID-19 through voluntary solidarity and cooperation among leading companies in the industry," and added, "As stated at the meeting on the 15th of last month, the government will support resolving immediate difficulties, demand recovery, and fundamental competitiveness enhancement."

Minister Sung awarded medals and commendations to 29 meritorious individuals for the development of the steel industry, including Executive Director Ham Young-cheol of Hyundai Steel.

Executive Director Ham received the Silver Tower Industrial Medal for developing the seismic-resistant steel specialized brand (HCORE), contributing to strengthening building safety, and actively responding to global trade to secure the competitiveness of domestic products.

Master Craftsman Son Byung-rak (Deputy General Manager) of POSCO contributed to mutual growth by providing 304 technical supports to over 40 domestic and international SMEs. He strengthened technological competitiveness through 43 years of steel equipment technology development. For these achievements, he was awarded the Bronze Tower Industrial Medal.

Director Kang Hee-woong of HuSteel received the Industrial Medal, Vice President Park Kwang-young of TCC Steel and Executive Director Kim In-jin of Hongdeok Industry received the Presidential Citation, and Deputy General Manager Yoon Jong-hyun of KG Dongbu Steel and Deputy General Manager Im Hwan-seok of Dongkuk Steel received the Prime Minister's Citation, respectively.

Twenty-two others, including Manager Hwang Seong-guk of SeAH Besteel, received the Minister of Trade, Industry and Energy Commendation.

Minister Sung encouraged, "Those who steadfastly protect industrial sites even in the economic wartime situation caused by COVID-19 are the driving force that enables our country to overcome the crisis."

This content was produced with the assistance of AI translation services.