POSCO Energy Partners with Shinhan Bank to Provide Financial Support to Partner Companies
[Asia Economy Reporter Hwang Yoon-joo] POSCO Energy is taking steps to alleviate the financial burden on its business partners, the cooperating companies.
On the 30th, POSCO Energy signed a business agreement for 'Mutual Financial Support for Cooperating Companies' at the POSCO Center in Seoul, attended by Lee Jeon-hyeok, Head of Planning and Support Division at POSCO Energy, and Choi Dong-wook, Vice President of Shinhan Bank, agreeing to jointly explore ways to reduce financial costs and provide credit support for POSCO Energy’s cooperating companies.
Through this agreement, POSCO Energy and Shinhan Bank will provide practical support measures such as ▲ preferential programs for performance guarantees for cooperating companies ▲ development of financial support products for cooperating companies in the future, aiming to assist cooperating companies facing difficulties due to the prolonged COVID-19 pandemic.
As the first mutual financial support program for cooperating companies, POSCO Energy and Shinhan Bank plan to offer a preferential performance guarantee service starting in November. Once the program is implemented, cooperating companies, as business partners, will benefit from lower performance guarantee rates compared to before, easing their financial burden. Shinhan Bank will be able to secure excellent customers, making a win-win cooperation possible.
At the signing ceremony, Lee Jeon-hyeok, Head of Planning and Support Division at POSCO Energy, said, "It is meaningful that POSCO Energy and Shinhan Bank have come together to create a healthy industrial ecosystem and through this, fulfill the role of a 'corporate citizen growing together with society.' I hope this agreement will serve as a foundation for the mutual growth of cooperating companies, our business partners, beyond just the two companies."
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Meanwhile, POSCO Energy operates financial support programs for small and medium-sized cooperating companies facing difficulties in fund management. It pays purchase payments 100% in cash twice a week, enabling partner companies to receive payments within a maximum of five days. From the second half of this year, POSCO Energy has also introduced a system to provide 30% advance payments upon request to smaller cooperating companies with fewer employees, actively working to reduce their financial burden and support cash liquidity.
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