Four major banks, SK hynix to provide W2tr in financing for semiconductor suppliers

K-SURE guarantees to channel funds to first- through third-tier suppliers

Guarantee fees, preferential rates to ease financial burden on partners

Key figures pose for a photo at the MOU signing ceremony for "Strengthening Financial Support for the Semiconductor Export Supply Chain," held Monday at the Yongin semiconductor cluster in Gyeonggi Province. From left: Jang Young-jin, president of Korea Trade Insurance Corporation; Lee Won-jong, deputy head of KB Kookmin Bank's CIB business group; Seo Yu-seok, deputy head of Hana Bank; Kim Jung-kwan, Minister of Trade, Industry and Energy; Kwak Noh-jung, CEO of SK hynix; Bae Yeon-su, deputy head of Woori Bank; and Jang Ho-sik, deputy head of Shinhan Bank. [Provided by KB Kookmin Bank]

South Korea's four major banks have joined forces with SK hynix to provide a combined 2 trillion won ($1.49 billion) in financing to semiconductor supply chain companies. Under the arrangement, SK hynix and the banks contribute funds that Korea Trade Insurance Corporation (K-SURE) uses to issue guarantees, channeling working capital to firms across the semiconductor materials, components and equipment supply chain.

The four banks — KB Kookmin Bank, Shinhan Bank, Hana Bank and Woori Bank — signed a memorandum of understanding with SK hynix and K-SURE on Monday at the Yongin semiconductor cluster in Gyeonggi Province to formalize the "Semiconductor Industry Export Supply Chain Strengthening Finance" initiative.

Under the agreement, K-SURE will issue guarantees worth a total of 2 trillion won to supplier companies recommended by SK hynix, with the four banks providing loans backed by those guarantees. The program covers not only first-tier suppliers that deal directly with SK hynix but also second- and third-tier partners in the materials, components and equipment sectors. Banks will supply working capital based on K-SURE guarantee certificates and offer preferential terms on guarantee fees and lending rates.

Hana Bank and Woori Bank will each provide 750 billion won in financing. Hana Bank will contribute about 42.4 billion won of its own funds, combined with 7.5 billion won from SK hynix's allocation, for a total contribution of 49.9 billion won to K-SURE. Supplier companies will receive full coverage of guarantee fees along with preferential lending rates and foreign exchange fee and rate benefits.

Woori Bank will supply 750 billion won in working capital, drawing on 30 billion won of its own funds plus SK hynix's 7.5 billion won share, for a total of 37.5 billion won. The bank will also separately cover guarantee fees worth about 12.4 billion won.

KB Kookmin Bank will provide 250 billion won in preferential guarantees using funds jointly contributed with SK hynix, covering the full guarantee fees of participating suppliers for three years regardless of loan size. Raon Robotics has been selected as the first company to receive support under the program.

Shinhan Bank is also participating with 250 billion won in financing. Shinhan Bank and SK hynix will jointly contribute a total of 16.625 billion won — 14.125 billion won from Shinhan Bank and 2.5 billion won from SK hynix — to K-SURE, which will in turn issue special guarantees to supplier companies recommended by SK hynix. Shinhan Bank will cover the full guarantee fees for those companies and provide preferential guarantee ratio benefits.

The banks said they plan to use the program to supply funds for raw material purchases and production expansion at supplier companies. The initiative is intended to broaden financial support beyond large corporations to small and midsize partners, improving access to financing across the semiconductor export supply chain.

rim@heraldcorp.com