The Korea Trade Insurance Corporation has received grants from private corporations for the first time and will support preferential financing amounting to 630 billion won. The beneficiaries are automotive suppliers.
Minister of Trade, Industry and Energy Kim Jong-gwan visited automotive parts manufacturer and exporter DY on the 18th as part of a series of field relay meetings on tariff responses. This visit aims to directly confirm the impact of tariffs from the U.S. on exports.
The Korea Trade Insurance Corporation also signed a "Export Financing Support Agreement" with Hyundai Motor and Kia, aimed at strengthening the automotive export supply chain amid challenging export conditions due to the U.S.-led tariff war.
According to the agreement, Hyundai Motor, Kia, and Hana Bank will contribute a total of 40 billion won. Based on this, the Korea Trade Insurance Corporation has decided to support preferential financing amounting to a total of 630 billion won to automotive suppliers. This contribution from Hyundai Motor and Kia marks the first instance of corporations contributing to the Trade Insurance Fund.
The newly established "Automotive Supplier Preferential Financing Product (Export Supply Chain Strengthening Guarantee)" will assist suppliers in securing production funds at low interest rates and high limits to deliver to finished car manufacturers, including Hyundai Motor and Kia. Hyundai Motor and Kia suppliers can obtain production funds from Hana Bank at reduced interest rates of up to 2 percentage points. Additionally, they can receive benefits such as increased guarantee limits, extended guarantee periods (from 1 year to 3 years), and reduced guarantee fee rates (from 1% to 0.65%).
A Ministry official explained, "By having Hana Bank support the guarantee fees paid to the Korea Trade Insurance Corporation, the expense burden on suppliers can be significantly reduced."
At the signing ceremony, Minister Kim presented the first guarantee certificate of the "Export Supply Chain Strengthening Guarantee" to Im Yeon-chan, CEO of DY. Choi Jae-hong, CEO of Seojin Industrial, and Kim Nam-kyo, CEO of NT, received the second and third guarantee certificates.
DY has secured 20 billion won in funding through this guarantee. Based on this, it plans to smoothly secure raw materials and expand orders. CEO Im stated, "Through the Export Supply Chain Strengthening Guarantee, we can secure funds under favorable conditions, which enables proactive facility investments for stable parts supply and increased production volume in the future."