New Deal - Hyundai Motor Provides '300 Billion KRW Special Guarantee' to Overseas Joint Venture Partners

Financial Support Agreement Ceremony Held on the 31st
Guarantee Ratio 90%, Fixed Guarantee Fee Rate 0.5%

The Korea Credit Guarantee Fund and Hyundai Motor Group have begun providing financial support necessary for Hyundai Motor and Kia suppliers to expand overseas. Hyundai Motor Group will make a special contribution of 15 billion KRW to the Korea Credit Guarantee Fund, which will supply special guarantees worth 300 billion KRW to Hyundai Motor Group’s partner companies.

On the 31st, a "Financial Support Agreement Ceremony for Overseas Joint Expansion of Korea Credit Guarantee Fund and Hyundai Motor·Kia Partner Companies" was held at Front1 in Mapo. Attending the ceremony were Kim So-young, Vice Chairman of the Financial Services Commission, Shim Hyun-gu, Executive Director of the Korea Credit Guarantee Fund, and Kim Dong-wook, Vice President of Hyundai Motor Group.

Through this agreement, the Korea Credit Guarantee Fund and Hyundai Motor Group will provide special guarantee products to support partner companies jointly expanding overseas with Hyundai Motor and Kia. For this special guarantee, the guarantee limit per company will be significantly increased from 7 billion KRW to 30 billion KRW. A guarantee ratio of 90% and a preferential fixed guarantee fee rate of 0.5% will also be offered. Additionally, commercial banks will provide preferential loan interest rates up to 1.5 percentage points when loans are secured with this special guarantee certificate.

Kim So-young, Vice Chairman of the Financial Services Commission, stated, "Through this, partner companies jointly expanding with Hyundai Motor Group’s electric vehicle production base in Georgia, USA, will be able to sufficiently secure funds necessary for overseas investment and business operations." She added, "This is the first case where large corporations, policy financial institutions, and the financial sector have collaborated to support partner companies expanding overseas alongside large corporations, in a situation where large corporations alone could not fully support the funds needed for their partners’ overseas expansion."

The agreement ceremony follows the "Comprehensive Export Finance Support Plan" announced on the 16th to resolve financial difficulties faced by export companies. Recently, South Korea’s exports have declined for 10 consecutive months since October last year due to low growth in major export countries and the restructuring of supply chains centered on domestic markets. In response, the Financial Services Commission announced a support plan worth 23 trillion KRW.

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