Funds expected to flow into advanced materials, hydrogen industries; bank signed similar deal with Chong Kun Dang last month

Woori Bank President Jeong Jin-wan (right) and Hyosung Group Vice Chairman Lee Sang-woon pose for a photo after signing a productive finance support MOU for fostering advanced strategic industries at Hyosung Group's headquarters in Mapo-gu, Seoul, on Monday. [Woori Bank]
Woori Bank President Jeong Jin-wan (right) and Hyosung Group Vice Chairman Lee Sang-woon pose for a photo after signing a productive finance support MOU for fostering advanced strategic industries at Hyosung Group's headquarters in Mapo-gu, Seoul, on Monday. [Woori Bank]

Woori Bank will supply 2 trillion won ($1.45 billion) over five years to support Hyosung Group's mass production of advanced materials and expansion into the hydrogen industry, in line with the government's productive finance policy.

The bank signed a "productive finance support MOU for fostering advanced strategic industries" Monday afternoon at Hyosung Group's headquarters in Mapo-gu, Seoul. Woori Bank President Jeong Jin-wan and Hyosung Group Vice Chairman Lee Sang-woon attended the signing ceremony along with senior executives from both sides. Under the agreement, Woori Bank plans to extend financial support to major Hyosung Group affiliates, including Hyosung Heavy Industries, Hyosung TNC and Hyosung Neochem.

The total support package is valued at 2 trillion won over five years.

Hyosung Group is currently building a group-wide mass production system for advanced materials, including carbon fiber. The conglomerate has also been expanding its hydrogen industry value chain — last year it became the first in the world to verify the operation of a 1-megawatt hydrogen engine generator under extreme weather conditions. Woori Bank plans to actively channel financing into these advanced industrial ventures over the next five years.

The MOU applies a "pre-set credit limit" structure, under which the 2 trillion won ceiling is established in advance, eliminating the need for separate credit review procedures each time funds are drawn. Woori Bank said this will significantly shorten the time it takes to disburse funds. "Companies can quickly access the capital they need without repeating separate financing procedures each time they execute an investment, which strengthens their ability to act on investment decisions and reduces uncertainty in fundraising," a Woori Bank official said.

The agreement is part of Woori Financial Group's "Future Co-growth Project," a group-wide strategy to shift from a household-lending-focused business model toward productive and inclusive finance, with 80 trillion won earmarked for supply over five years. Last month, Woori Bank announced a deal with pharmaceutical firm Chong Kun Dang to provide 1 trillion won in financial support over five years to strengthen competitiveness in the advanced biotech industry. Earlier, the bank also teamed up with Korea Development Bank to arrange 2.5 trillion won in acquisition financing for Doosan Group's takeover of SK Siltron.

"This agreement is a prime example of productive finance — providing preemptive financial support for advanced strategic industries to back companies' future investment," said Noh Yong-pil, head of Woori Bank's large corporate sales strategy division. "We will offer the best financial solutions so that Hyosung Group can focus on securing future growth engines and strengthening its global competitiveness."


hyuk@heraldcorp.com