POSCO and KB Kookmin Bank Introduce Supply Chain Finance to Support Client Liquidity in the Steel Industry

Building an Integrated Supply Chain Linking POSCO, Clients, and the Bank

One-Stop Financial Services via 'My POSCO' Platform

POSCO has partnered with KB Kookmin Bank to introduce a Supply Chain Finance service for its steel industry clients.

On the 9th, at the Posco-Kookmin Bank business agreement signing ceremony, Heegeun Lee, President of Posco (left), and Hwanju Lee, President of Kookmin Bank, signed the business agreement. Posco

On July 9, POSCO announced that it had signed a supply chain finance business agreement (MOU) with KB Kookmin Bank at the POSCO Center in Seoul. The signing ceremony was attended by Lee Hee-geun, President of POSCO, Lee Hwan-joo, President of KB Kookmin Bank, and other representatives from both companies.

Supply Chain Finance is a financial service that connects companies and financial institutions participating in the supply chain, from product manufacturing to distribution, to enhance capital liquidity. The aim is to reduce the financial burden on client companies that face difficulties in securing funding due to delayed payment collection or a lack of collateral.

The two companies plan to build a system that links KB Kookmin Bank's loan program to POSCO's integrated order and delivery platform, 'My POSCO,' with the goal of officially launching it within the year. Once the system is completed, client companies will be able to use a one-stop process within the platform—from applying for loans to execution—and benefit from preferential interest rates, thereby reducing their financial costs.

Under this agreement, the bank will handle the collection of sales proceeds and provide client companies with both financial services such as corporate loans and non-financial services such as ESG consulting. POSCO aims to reduce financial risks and improve the liquidity of its client companies, thereby strengthening the stability of the steel supply chain.

KB Kookmin Bank plans to build a financial model to support the steel industry supply chain and expand related financial services, such as deposits and foreign exchange, in order to maximize business synergy.

Lee Hee-geun, President of POSCO, stated, "This agreement is more than just financial cooperation; it serves as an opportunity to further develop POSCO's win-win partnership model that grows together with its clients. We hope this will become a representative case of mutual growth created by collaboration between the manufacturing and financial industries."

After completing the system within the year, POSCO and KB Kookmin Bank plan to hold joint briefing sessions for client companies to introduce the financial support program and its benefits.

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