Korea Development Bank headquarters [Korea Development Bank]
Korea Development Bank headquarters [Korea Development Bank]

Korea Development Bank signed an MOU with the Korea Credit Guarantee Fund and Hanwha Group's defense and shipbuilding affiliates to launch a "co-growth finance program," the bank announced Monday.

Under the arrangement, four Hanwha Group affiliates — Hanwha Ocean, Hanwha Aerospace, Hanwha Systems and Hanwha Engine — will make special contributions to the Korea Credit Guarantee Fund, which will in turn provide preferential guarantees to suppliers. Korea Development Bank will then use dedicated funds to support facility investment loans.

The program is designed to support facility investment by defense and shipbuilding suppliers outside the Greater Seoul area, contributing to balanced regional development and supply chain stability in both sectors. It also aims to strengthen industrial safety by expanding the adoption of automated equipment.

The initiative marks the first collaborative model to link a private company's special contribution with preferential guarantees and facility financing from policy finance institutions.

The specific funding size will be determined after further discussions.

"The defense and shipbuilding industries are representative strategic sectors that underpin both South Korea's security and its economy, and their competitiveness stems from the sustained facility investment and production capacity of their suppliers," Korea Development Bank Chairman Park Sang-jin said. "I hope this program will serve as an opportunity to support stable facility investment and stronger industrial safety capabilities among suppliers in regional areas."


hyuk@heraldcorp.com