Four Major Banks, SK hynix to Provide KRW 2 Trillion in Support for Semiconductor Suppliers

Banks and SK hynix to contribute funds
Financing across the supply chain backed by Korea Trade Insurance Corporation guarantees

KB Kookmin Bank, Shinhan Bank, Hana Bank and Woori Bank, the country’s four major banks, and SK hynix will provide a total of KRW 2 trillion in financing to semiconductor suppliers. The banks and SK hynix will contribute funds, which the Korea Trade Insurance Corporation will use to provide guarantees. The support will extend beyond first-tier suppliers that deal directly with SK hynix to cover the entire supply chain, including semiconductor materials, components and equipment.

Key figures who attended the “Signing Ceremony for an MOU to Strengthen Semiconductor Export Supply Chains” at the semiconductor cluster in Yongin, Gyeonggi Province, on the 19th pose for a commemorative photo. From left: Jang Youngjin, president of the Korea Trade Insurance Corporation; Lee Wonjong, vice president of KB Kookmin Bank’s CIB Business Group; Seo Yuseok, vice president of Hana Bank; Jeongkwan Kim, Minister of Trade, Industry and Energy; Kwak Nojeong, CEO of SK hynix; Bae Yeonsu, vice president of Woori Bank; and Jang Hosik, vice president of Shinhan Bank. Provided by KB Kookmin Bank.

According to the financial sector on Oct. 20, the four banks signed an agreement on “Financing to Strengthen the Export Supply Chain of the Semiconductor Industry” with SK hynix and the Korea Trade Insurance Corporation at the semiconductor cluster in Yongin, Gyeonggi Province, on Oct. 19.

Under the agreement, the four banks and SK hynix will contribute funds to the Korea Trade Insurance Corporation, which will use them to provide a total of KRW 2 trillion in guarantees to suppliers recommended by SK hynix. The banks will then provide the suppliers with the funds needed for business growth, including trade finance and working capital, backed by the corporation’s guarantees.

Eligible recipients include not only first-tier suppliers that deal directly with SK hynix but also second- and third-tier suppliers in the materials, components and equipment sectors.

Hana Bank and Woori Bank will each provide KRW 750 billion in financing. Hana Bank will contribute about KRW 42.4 billion, with SK hynix adding KRW 7.5 billion, for a total contribution of KRW 49.9 billion to the Korea Trade Insurance Corporation. It will also cover the full guarantee fees for supplier companies and offer preferential loan rates, foreign exchange fees and exchange rates. Hana Bank delivered its first guarantee certificate to Hanyang ENG.

Woori Bank will provide KRW 750 billion in working capital, funded by KRW 37.5 billion, comprising KRW 30 billion from the bank and KRW 7.5 billion allocated by SK hynix. It will also provide about KRW 12.4 billion separately to cover guarantee fees. 

KB Kookmin Bank and Shinhan Bank will each provide KRW 250 billion in financing. KB Kookmin Bank will make a special contribution jointly with SK hynix and use the funds to provide preferred guarantees totaling KRW 250 billion. It will also cover all guarantee fees for three years, regardless of the loan amount. Raon Robotics was selected as the first company to receive support.

Shinhan Bank will also take part in the KRW 250 billion financing program, using a total of KRW 16.625 billion in funding, comprising a KRW 14.125 billion contribution and KRW 2.5 billion allocated by SK hynix. Shinhan Bank will cover the company’s guarantee fees in full and offer preferential guarantee coverage ratios. 

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