Shinbo Provides 5.1 Billion Won Guarantee Support to Daewoo Shipbuilding LNG Project Partners
[Asia Economy Reporter Song Seung-seop] On the 20th, the Korea Credit Guarantee Fund announced that it will provide a "joint project guarantee" worth 5.1 billion KRW to six partner companies participating in Daewoo Shipbuilding & Marine Engineering's Arc 7-class icebreaking LNG carrier construction project.
A joint project guarantee is a product in which the Credit Guarantee Fund directly evaluates the business feasibility of projects jointly promoted by large corporations and partner companies and provides guarantees to the partner companies. According to the Credit Guarantee Fund, the partner companies will receive guarantee support worth 5.1 billion KRW from this project, and the funds will be used for technology development and securing raw materials.
Through this project, partner companies with low credit ratings or weak financial ratios are also expected to receive guarantee support. Unlike in the past, where evaluations focused on individual companies' sales performance and financial ratings, support is provided by reviewing the innovation and growth potential of the joint project.
The guarantee limit per project is up to 40 billion KRW, and the guarantee ratio applied to individual companies is about 90% (up to 2 billion KRW). The maturity period is until the completion of the project, up to a maximum of five years.
Guarantee support for partner companies was introduced in August last year and was applied to Hyundai Motor Company's "electric vehicle dedicated platform project." Guarantee support for Daewoo Shipbuilding & Marine Engineering's partner companies is the second case.
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A representative from the Credit Guarantee Fund stated, "In the future, we will continuously expand the scope and scale of joint project guarantees to include not only the automobile and shipbuilding industries but also national key industries such as steel, chemicals, and semiconductors, as well as government Korean New Deal policy sectors."
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