Daegu City and Korea Technology Finance Corporation Provide 12.5 Billion KRW Preferential Guarantee Support to Help Auto Parts Companies Overcome Crisis

Daegu City and the Korea Technology Finance Corporation signed a special mutual growth guarantee agreement for the automobile industry at the city hall on the 25th.

[Asia Economy Yeongnam Reporting Headquarters Reporter Yeo Jong-gu] Daegu City signed a "Special Mutual Growth Guarantee Agreement for the Automotive Industry" with the Korea Technology Finance Corporation on the 25th to support local automotive parts companies facing crises.

The special mutual growth guarantee agreement was established to help local automotive parts companies overcome crises caused by difficulties in securing liquidity due to prolonged COVID-19 and production declines from the transition to future vehicles.

The Korea Technology Finance Corporation has supported mutual growth guarantees worth 440 billion KRW nationwide for automotive parts companies in cooperation with major automakers such as Hyundai and Korea GM since 2020 to overcome the domestic automotive industry crisis. This time, preferential guarantees worth 12.5 billion KRW will be provided exclusively to local companies.

The support targets automotive parts companies located in the region with assets under 500 billion KRW, offering preferential guarantee benefits including a 100% guarantee ratio and a 0.3% reduction in guarantee fees.

The support scale is up to 3 billion KRW per company, and companies affected by COVID-19 will receive relaxed guarantee screening. Applications and consultations are available from March at Korea Technology Finance Corporation branches.

The city is also supporting policy fund loans worth 20 billion KRW in cooperation with the Daegu Regional Headquarters of the Small and Medium Business Corporation to help local automotive parts companies respond promptly to the rapidly changing industrial environment.

A Daegu city official said, "We hope that this agreement will help alleviate some of the difficulties faced by local automotive parts companies struggling due to the prolonged COVID-19 pandemic and the accelerated transition to future vehicles."

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