POSCO Inter, Signs Payment Support MOU with Hyundai Commercial for 'Mutual Growth with Small and Medium Clients'

[Asia Economy Reporter Ki-min Lee] POSCO International is operating a payment support program for client companies facing difficulties in purchasing steel due to lack of funds.

On the 18th, POSCO International signed a 'Payment Support Business Agreement (MOU) for the Activation of Steel Online Transactions' with Hyundai Commercial. The payment support program is a system that supports smooth financing for small and medium-sized steel clients who had difficulty trading with POSCO International due to the burden of providing collateral and lump-sum payment of settlement funds.

Under this program, small and medium-sized clients can trade with POSCO International by paying only a certain amount of the product as an advance payment. After paying the advance, the client provides the product as collateral to Hyundai Commercial at the time of product delivery, and Hyundai Commercial supports the client with payment funds up to 70% of the cost of the collateralized product. The client can freely repay the cost to Hyundai Commercial within the agreed period of 90 days.

The payment support program will be initially implemented for members of POSCO International's steel e-commerce platform, SteelTrade. POSCO International opened SteelTrade in November 2019 to expand the online sales area in the steel sector. Once the system stabilizes, the target will be expanded to offline clients as well.

POSCO International expects that the introduction of this payment support program will serve as a catalyst to activate the online distribution market for steel products. Clients can secure purchasing competitiveness through smooth financing, and Hyundai Commercial can enhance its recognition by launching a payment support process for purchase funds with the steel industry.

A representative of Sejung Co., Ltd., a SteelTrade member company, said, "The introduction of the payment support program is like rain in a drought for small and medium-sized enterprises," adding, "It will be a substantial help in easing financing and interest burdens."

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