Hanwha(000880) and Korea Development Bank (KDB) expanded a regional revitalization co-prosperity fund that lowers the lending rate for partner small and midsize companies located outside the capital area.
On the 28th, according to Hanwha, six Hanwha Group companies, including Hanwha, Hanwha Solutions(009830), and Hanwha Aerospace(012450), deposited a total of 50 billion won with the bank—30 billion won last year and 20 billion won in the first half of this year. Using these funds, the bank began operating in June a co-prosperity fund that lends working capital and facility funds to the six companies' partner small and midsize firms at rates below the base rate.
The co-prosperity fund is a program aligned with the government's policy for joint growth between large and small businesses that lends working and facility funds to partner firms at preferential rates below market rates, using deposits that large companies place with financial institutions as the funding source. Hanwha and the bank also operated the fund last year, but said they expanded its size this year and further increased the rate discounts.
Based on Hanwha Group's deposits, the bank lends working and facility funds to small and midsize partner companies located in non-capital regions at rates below the base rate. The co-prosperity fund that began operating this year runs through Jun. 28 next year.
The bank and Hanwha Group signed a memorandum of understanding (MOU) last month with Korea Credit Guarantee Fund (KODIT) and Hanwha Group's defense and shipbuilding affiliates for a "co-growth finance program," and are planning a financial program following the co-prosperity fund. Under the plan, Hanwha Group makes a special contribution to KODIT, KODIT provides preferential guarantees to partner firms, and the bank supplies facility funds.