Hyundai Mobis partners with Hana Bank, K-Sure for $370M supplier financing program

Hyundai Mobis is bolstering its supply chain by partnering with financial institutions to provide significant financial support to its partners. The company announced on August 28 that it, along with Hana Bank and the Korea Credit Guarantee Fund (K-Sure), will launch a "mutual growth guarantee program" valued at 500 billion won (approximately $370 million).

The agreement, signed at Hyundai Mobis headquarters in Seoul, aims to assist small and medium-sized enterprises (SMEs) within its supply network that possess strong technological capabilities and growth potential but face difficulties in securing funds due to insufficient credit ratings or collateral. This initiative expands support beyond traditional financial aid, seeking to create a more effective ecosystem for shared growth.

This program is designed to evaluate suppliers based on their technology and business prospects, moving away from conventional methods that often disadvantage smaller firms. K-Sure will provide guarantees based on these assessments, enabling suppliers to access loans from Hana Bank with preferential interest rates ranging from 3.9% to 4.9%. The program is scheduled to commence in September.

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We will closely cooperate to ensure that SMEs with technology and potential do not miss opportunities for growth.

Hyundai Mobis has a history of supporting its suppliers beyond mere financial loans. The company has facilitated over 157 trillion won in payments over the last three years, offering cash payments and reducing transaction fees. It also runs the "Mobius Boot Camp" to provide specialized software training and connect graduates with supplier employment opportunities, addressing recruitment challenges for SMEs.

Furthermore, Hyundai Mobis assists suppliers in meeting global environmental regulations by offering support for eco-friendly facility adoption and consulting services. The company anticipates that this new financing program will not only reduce financial burdens and improve liquidity for suppliers, enabling increased investment in R&D and production facilities, but also positively impact the development of its supply chain for future businesses like robotics and semiconductors.

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This mutual growth guarantee program was prepared to support suppliers who have excellent technology but faced difficulties in securing growth opportunities due to financial conditions.