Shinbo Supports Hyundai Motor Partner Companies with 22 Billion KRW 'Joint Project Guarantee'

Shinbo Provides Guarantees for 11 Partner Companies Worth 22 Billion KRW for Mass Production Project of Pure Electric Vehicles Using E-GMP Electric Vehicle Dedicated Platform Technology

[Asia Economy Reporter Park Sun-mi] The Korea Credit Guarantee Fund (KODIT) will provide a 22 billion KRW scale ‘Joint Project Guarantee’ to partner companies participating in Hyundai Motor Company's electric vehicle dedicated platform E-GMP project.

KODIT announced on the 2nd that it has newly introduced the ‘Joint Project Guarantee’ as a follow-up measure to the innovative finance promotion policy and the ‘Support Measures for Vulnerable Companies in the Automotive Parts Industry’ announced last June.

The Joint Project Guarantee is a product in which KODIT evaluates the business feasibility of projects jointly promoted by large corporations and partner companies and provides guarantees to the partner companies. This method departs from the existing approach that mainly reviews individual companies’ past sales performance and financial ratings, and instead supports by examining the innovation and growth potential of the joint project. Through this, partner companies with low credit ratings or weak financial ratios in the medium to low credit range can also receive guarantee support.

The eligible projects include future innovative projects such as eco-friendly mobility businesses, next-generation fuel cell businesses, and Korean New Deal-related projects. The guarantee support limit is up to 40 billion KRW per project and up to 2 billion KRW per partner company participating in the project.

For this Joint Project Guarantee, KODIT and Hyundai Motor Group (Hyundai Motor Company, Kia Motors, Hyundai Mobis) signed a ‘Business Agreement for Joint Project Financial Support’ last August.

According to the agreement, Hyundai Motor Group will contribute 2 billion KRW to KODIT, and KODIT will provide joint project guarantees to partner companies participating in Hyundai Motor Company's E-GMP project.

Among the partner companies starting mass production of Hyundai’s pure electric vehicle ‘Ioniq,’ 11 companies will receive a total of 22 billion KRW in joint project guarantees. The support funds will be used for expanding production facilities and securing raw materials due to mass production.

A KODIT official stated, “Even companies with temporarily weak sales performance and credit ratings can receive guarantee support if the joint project has excellent business feasibility,” and added, “In the future, we will continuously expand the scope and scale of support to strengthen the competitiveness of national key industries such as shipbuilding and steel, beyond the automotive sector.”

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