The Korea Credit Guarantee Fund is partnering with the Korea Development Bank and Hanwha Group to support facility investments for defense and shipbuilding companies located outside the capital region.
On July 20, the Credit Guarantee Fund announced that it has signed a memorandum of understanding with Korea Development Bank, Hanwha Ocean, Hanwha Aerospace, Hanwha Systems, and Hanwha Engine to promote a financial program for the joint growth of the defense and shipbuilding sectors.
The agreement aims to enhance productivity by supporting the expansion of automation equipment and industrial safety facilities for Hanwha Group's partner companies, thereby strengthening the competitiveness of the defense and shipbuilding industry ecosystem and the local economy.
Under the agreement, Hanwha Group will make a special contribution to the Credit Guarantee Fund, which will use these funds to provide preferential guarantees to the recommended partner companies. The Korea Development Bank will support facility loans using its special fund for future strategic industries. However, the specific conditions regarding the scale of the special contribution and the guarantees and loans are currently under discussion among the relevant institutions.
The support will target small and medium-sized enterprises in the defense and shipbuilding sectors located outside the capital region that require facility investments, such as the establishment of automation equipment.
The Credit Guarantee Fund plans to expand its financial support from primarily operating funds to large-scale facility investments. It is expected to assist manufacturers outside the capital region in enhancing their industrial safety equipment, which has been challenging to finance in the private financial market.
Kang Seung-jun, Chairman of the Credit Guarantee Fund, stated, "We will reliably support large-scale, high-risk facility investments that are difficult for private finance to adequately back, and we will continue to expand the joint growth program for the defense and shipbuilding industries."
* This article has been translated by AI.
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