Woori Bank Launches Supply Chain Finance Loan to Fund SMEs from Production Stage... Before Delivery

Combines Actual Intercompany Order Data with Korea Credit Guarantee Fund Guarantee

Selected by the Financial Services Commission as an Exemplary Supply Chain Finance Case

Woori Bank will provide financing to small and medium-sized enterprises starting at the production stage before delivery.

Woori Bank said on November 3 that it had launched a supply chain finance loan product combining actual order information between companies with the Korea Credit Guarantee Fund's "Supply-One" guarantee.

The product uses order information from Woori Bank's non-face-to-face corporate lending platform, "OneBiz e-MP," which is linked to companies' purchasing systems. Woori Bank provides the order information to the Korea Credit Guarantee Fund, which applies it in its guarantee review before issuing a guarantee certificate. Woori Bank makes a special contribution to fund the issuance of the certificates. It also provides seller companies with production financing needed before delivery.

The product was also selected as an exemplary supply chain finance case at the Financial Services Commission's "Meeting on the Transformation to Productive Finance" on November 2. It was recognized for its potential to address the production financing gap at the order stage.

Eligible applicants are outstanding seller companies recommended by buyer companies that use OneBiz e-MP. The loan limit is up to 80% of each individual order amount, within half of the annual transaction amount between the buyer and seller companies and capped at KRW 3 billion. The loans are secured by guarantee certificates, which lower interest rates, and the guarantee fee rate is discounted by 0.4 percentage points.

Woori Bank will begin providing support on a KRW 20 billion scale in the fourth quarter of this year, supplying a total of KRW 200 billion in production financing. It also plans to provide additional support if the limit is exhausted.

A Woori Bank official said, "Until now, seller companies had to first put up production funds, such as raw material and labor costs, after receiving an order and before delivery, but it was difficult to obtain financing before confirmed receivables arose. Woori Bank plans to use actual order information for financing to bridge the funding gap between ordering and delivery."

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