IBK Industrial Bank of Korea to Provide 100 Billion Won in Financial Support to Hyundai Motor and Kia Semiconductor Partners

IBK Industrial Bank of Korea will provide financial support totaling 100 billion won to alleviate funding burdens for semiconductor small and medium-sized enterprises (SMEs) that supply Hyundai Motor Company and Kia Corporation.

On July 30, IBK Industrial Bank of Korea announced that it has signed a “Financial Support Business Agreement for Hyundai Motor and Kia Semiconductor Partner Companies” with Hyundai Motor Company, Kia Corporation, and Korea Technology Finance Corporation (KIBO), launching a 100 billion-won financial support program. This initiative is designed to help ease the financial burden on partner SMEs experiencing difficulty in raising funds due to global economic uncertainty, raw material price volatility, and the transition to future vehicles, thereby enhancing the stability and competitiveness of the automotive industry’s supply chain.

To fund the program, IBK Industrial Bank of Korea and Hyundai Motor Company and Kia Corporation will make special contributions to KIBO. Based on these contributions, KIBO will provide guarantees to semiconductor SMEs supplying Hyundai Motor and Kia Corporation. IBK Industrial Bank of Korea will then offer low-interest loans backed by these guarantees. Eligible companies will benefit from an interest rate reduction of up to 1.3 percentage points and a full guarantee fee waiver for the first two years after loan execution. An official from IBK Industrial Bank of Korea commented, “This initiative is a cooperative financial support model where financial institutions, automakers, and guarantee organizations work together to strengthen the competitiveness of SMEs,” adding, “We will continue to expand customized financial support programs to help secure supply chain stability and promote sustainable growth for SMEs within the industrial ecosystem.”

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