Korea Credit Guarantee Fund and Hyundai Motor Group to Provide 260 Billion Won in Liquidity to Partner Companies

Korea Credit Guarantee Fund and Hyundai Motor Group Introduce Win-Win P-CBO Guarantee Program
Financial Burden on Partner Companies Eased Using Hyundai Motor Group's Contribution

The Korea Credit Guarantee Fund, in collaboration with Hyundai Motor Group, will supply a total of 260 billion won in liquidity to Hyundai Motor and Kia partner companies through the introduction of a P-CBO guarantee program.

The P-CBO guarantee is a system in which companies issue asset-backed securities based on corporate bonds and other debt instruments, enabling them to stably raise regular funds directly from the financial market.

This program was established to assist auto parts manufacturing partners whose business conditions have deteriorated due to factors such as U.S. tariff policies. The Korea Credit Guarantee Fund plans to provide 133 billion won on May 30, with the remaining amount to be supplied sequentially within the year.

Typically, companies participating in the issuance of P-CBOs are required to purchase subordinated asset-backed securities at an average annual rate of 1.0%. However, partners participating in this program will be exempt from this requirement through a 7 billion won fund contributed by Hyundai Motor and Kia, allowing them to secure large-scale funding while significantly reducing their financial burden.

A representative from the Korea Credit Guarantee Fund stated, "This agreement marks the first case of introducing a new type of P-CBO guarantee program in partnership with a major corporation to support partner companies," and added, "We will continue to strengthen policy-based financial support so that companies can overcome crises amid rapidly changing domestic and global economic conditions."

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