Korea Credit Guarantee Fund Signs Financial Support Agreement with Hyundai Motor Group and Six Banks
by Kim Hye Min
Published 29 Apr.2025 09:34(KST)
Hyundai Motor, Kia, and Six Banks Contribute 16 Billion KRW in Special Funds
Total of 240 Billion KRW in Financial Support for Partner Companies
The Korea Credit Guarantee Fund announced on April 29 that it has signed a "Financial Support Business Agreement for Promoting Global Expansion of Future Mobility" together with Hyundai Motor Group and six banks.
This agreement is part of the "Emergency Response Measures to Strengthen the Automotive Ecosystem" announced by the government on April 9. It was established to support domestic secondary and tertiary partner companies participating in overseas export joint projects promoted by Hyundai Motor and Kia. The agreement includes KB Kookmin Bank, NongHyup Bank, Shinhan Bank, Woori Bank, Hana Bank, and Kyongnam Bank.
Under the agreement, Hyundai Motor and Kia will each contribute 8 billion KRW, KB Kookmin Bank and NongHyup Bank will each contribute 2 billion KRW, and Kyongnam Bank, Shinhan Bank, Woori Bank, and Hana Bank will each contribute 1 billion KRW, for a total of 16 billion KRW in special contributions to the Korea Credit Guarantee Fund. Using these funds, the Korea Credit Guarantee Fund plans to provide guarantees totaling 240 billion KRW by the third quarter of this year. Beneficiary companies will receive preferential benefits, including a maximum guarantee limit of 7 billion KRW per company and a 100% guarantee ratio.
Guarantee fees will be fully exempted in the first year with support from the participating banks. In the second and third years, a fixed guarantee fee rate of 0.5% will apply, and from the fourth year onward, a rate of 0.8% will be applied. In accordance with the government's comprehensive export finance support plan, preferential loan interest rates will also be provided.
A Korea Credit Guarantee Fund official stated, "This agreement is the first case of supporting export joint project guarantees with funds matched by large corporations and the financial sector, and it serves as an exemplary win-win model created by the private sector, financial institutions, and public organizations together." The official added, "We will continue to actively support promising export projects to not only strengthen the global competitiveness of companies, but also to take the lead in fostering win-win cooperation between large enterprises and small and medium-sized companies."
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